southeastern pennsylvania transportation ... - septa.org · presentation award to southeastern...

FISCAL YEAR 2021OPERATING BUDGET

Fiscal Year 2022-2026 • Financial Projections

Southeastern Pennsylvania Transportation Authority

Essential Service Provider to the Region

i

Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget

Presentation Award to Southeastern Pennsylvania Transportation Authority, Pennsylvania, for its Annual Budget for

the fiscal year beginning July 1, 2019. In order to receive this award, a governmental unit must publish a budget

document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a

communications device.

This award is valid for a period of one year only. We believe our current budget continues to conform to program

requirements, and we are submitting it to GFOA to determine its eligibility for another award.

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ii

Southeastern Pennsylvania Transportation Authority

Board Members

Chairman

Pasquale T. Deon, Sr.

Vice-Chairman Honorable Kenneth Lawrence, Jr.

Bucks County Pasquale T. Deon, Sr. Charles H. Martin

Chester County Joseph E. Brion, Esquire Kevin L. Johnson, P.E.

Delaware County Thomas E. Babcock Mark H. Dambly

Montgomery County Robert D. Fox, Esquire

Honorable Kenneth Lawrence, Jr.

City of Philadelphia Michael A. Carroll, P.E. Deborah Mahler

Governor’s Appointee

Obra S. Kernodle, IV

Senate Majority Leader Appointee

Honorable Stewart J. Greenleaf, Esquire

House Majority Leader Appointee

Honorable Marcy Toepel

Senate Minority Leader Appointee William J. Leonard, Esquire

House Minority Leader Appointee John I. Kane

SEPTA Officers

General Manager Leslie S. Richards

Deputy General Manager - Treasurer

Richard G. Burnfield

General Counsel

Gino J. Benedetti, Esquire

Controller to the Board

Stephen A. Jobs, CPA

Secretary to the Board Carol R. Looby

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Given the uncertainties surrounding the health and economic recovery rate of the region, and taking into consideration the delayed implementation of the fare increase, it is clear that actual ridership and operating revenue ultimately realized in Fiscal Year 2021 will differ from the adopted baseline budget. The remaining $552 million in CARES Act operating subsidies that SEPTA is eligible to receive, careful management of operating expenses, and aligning service to more closely match ridership requirements, should enable the Authority to mitigate operating revenue shortfalls that will occur during Fiscal Year 2021.

During the COVID-19 pandemic, SEPTA has proven to be an essential business partner to the communities the Authority serves by providing necessary transportation to keep life-sustaining businesses functioning. SEPT A's heroic frontline employees continue to play a crucial role getting other frontline workers including healthcare providers and other essential workers to their places of employment in a manner that prioritizes safety and cleanliness above all else.

Going forward, the safety of our customers and employees will continue to be a top priority as we recover from the COVID-19 pandemic. SEPTA management has been working closely with all employees, union representatives and public health officials to implement routine testing and proactive measures to keep our customers and employees safe, including increased sanitization and deep cleaning measures of equipment system-wide. Some of our ongoing efforts include sanitizing every vehicle at least twice each day, sanitizing high touch surfaces on equipment, and working around the clock disinfecting and cleaning all open stations. SEPT A has also prioritized personal safety while riding our vehicles. We require facial coverings for all employees and customers when on SEPTA property, imposed passenger capacity limits on buses, trolleys and the Norristown High Speed Line, and installed social distancing decals on vehicle seating to indicate appropriate spacing. The Authority has also partnered with the Black Doctors COVID-19 Consortium to provide testing for employees in communities that we serve. All of our decisions are guided by information from the Pennsylvania Department of Health and CDC to help ensure a safe and healthy environment. SEPT A is closely monitoring the course of the crisis and updating procedures and protocols accordingly.

SEPTA's commitment to rebuilding the system was strengthened due to transportation funding received through passage of state legislation under Act 89. Over the next two years, the Authority will take delivery of 71 new paratransit vehicles, 45 multi-level regional railcars, and 140 hybrid-electric buses. The new buses will increase the size of the energy efficient hybrid bus fleet to approximately 90% of SEPTA's overall bus

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SEPTA FY 2021 Operating Budget

Table of Contents

vi

PREFACE

GFOA Award .............................................................................................................. i

SEPTA Board Members and Officers......................................................................... ii

General Manager’s Memorandum ............................................................................ iii

Table of Contents ..................................................................................................... vi

1. INTRODUCTION AND PROFILE

SEPTA History ........................................................................................................... 1

SEPTA Service Profile at a Glance ............................................................................ 2

SEPTA Rail & Transit Maps ....................................................................................... 3

Passenger Profile ...................................................................................................... 5

Customer Satisfaction Ratings/Key Regional Transportation Trends ......................... 7

Strategic Business Plan ............................................................................................ 9

Key Performance Indicators ..................................................................................... 10

2. THE BUDGET PROCESS

Budget Development ............................................................................................... 17

Fiscal Year 2021 Calendar ...................................................................................... 18

Key Activities in the Budget Process ........................................................................ 19

3. FISCAL YEAR 2021 ASSUMPTIONS & CONSOLIDATED BUDGET

Assumptions ............................................................................................................ 20

Fiscal Year 2021 Consolidated Budget ................................................................... 22

4. FINANCIAL & BUDGETARY POLICIES

Financial Planning Policies ...................................................................................... 23

Revenue Policies ..................................................................................................... 24

Expenditure Policies ................................................................................................ 25

Description of Existing Debt and Debt Service Policies ............................................ 25

Statement of Changes in Equity ............................................................................... 32

5. ORGANIZATIONAL STRUCTURE

Operating Divisions .................................................................................................. 33

Operating and Staff Departments ............................................................................ 34

Corporate Team Organization Chart ........................................................................ 36


Table of Contents

vii

6. THREE YEAR COMPARISON FISCAL YEARS 2019 - 2021

Consolidated .......................................................................................................... 37

City Transit Division ............................................................................................... 38

Victory Division ...................................................................................................... 39

Frontier Division ..................................................................................................... 40

Regional Rail Division ............................................................................................. 41

7. FINANCIAL PROJECTIONS

Summary of Assumptions ........................................................................................ 42

Financial Projections of Consolidated Budget .......................................................... 43

8. OPERATING REVENUE AND SERVICE PLAN OVERVIEW

Annual Service Plan Overview ................................................................................. 44

Revenue Assumptions by Category ......................................................................... 45

Ten Year Revenue Trends ....................................................................................... 46

Summary of Operating Revenue .............................................................................. 47

9. OPERATING SUBSIDIES

Subsidy Allocation and Detail .................................................................................. 48

Service Stabilization Fund ....................................................................................... 51

Detail of Subsidies ................................................................................................... 52

Summary of Operating Subsidies ............................................................................ 53

Detail of Local Subsidies and Other by County ........................................................ 54

Summary of Local Subsidies by County ................................................................... 55

10. OPERATING EXPENSES

Expense Assumptions by Category ......................................................................... 56

Ten Year Expense Trends ....................................................................................... 58

Summary of Operating Expenses ............................................................................ 60

FY 2021 Budget – Detail of Expenses ..................................................................... 61

FY 2021 Budget – Allocation By Company .............................................................. 62

FY 2020 Actual – Detail of Expenses ....................................................................... 63

FY 2019 Actual – Detail of Expenses ....................................................................... 64



Table of Contents

viii

11. HEADCOUNT AUTHORIZATIONS

Headcount Designations .......................................................................................... 65

Fiscal Year 2021 Headcount Authorizations ........................................................... 66

Fiscal Years 2017-2021 Headcount Authorization .................................................. 69

Headcount Authorization Cause of Change ............................................................. 72

12. DEPARTMENTAL SUMMARIES BY DIVISION

Corporate Staff... ..................................................................................................... 77

Transit Police... ........................................................................................................ 86

System Safety ......................................................................................................... 90

Operations ............................................................................................................... 96

Engineering, Maintenance and Construction ......................................................... 111

Deputy General Manager/Treasurer’s Staff ........................................................... 122

Deputy General Manager/Operations, EM&C and Vehicles .................................. 131

Finance ................................................................................................................. 138

Planning and Strategic Initiatives .......................................................................... 148

Employee Development and Relations ................................................................. 156

Human Resources ................................................................................................ 164

Procurement, Supply Chain and Disadvantaged Business Enterprise .................. 170

Audit and Investigative Services ............................................................................ 178

Customer Experience and Advocacy ..................................................................... 184

Office of General Counsel ...................................................................................... 191

Public and Government Affairs .............................................................................. 198

13. SUMMARY OF INTERDEPARTMENTAL EXPENSES

Fringe Benefits ...................................................................................................... 206

Non-Departmental Expenses ................................................................................. 208

CCT Connect ADA, Shared Ride Program and Other Expenses ........................... 209

14. SUMMARY OF CAPITAL IMPROVEMENT PROGRAM

Capital Improvement Program ............................................................................... 211

Fiscal Year 2021 Capital Budget (Source and Use of Funds) ................................ 212

Fiscal Year 2021-2024 Capital Program ................................................................ 213

Fiscal Year 2021 Capital Budget and FY 2021-2032 Capital Program ................... 214

Capital Projects Impact Analysis on Operating Budget FY 2021-2026-SEPTA ...... 215

Capital Projects Impact Analysis on Operating Budget FY 2021-2026-Outside ...... 218

GLOSSARY

Acronyms .............................................................................................................. 220

Terms .................................................................................................................... 224


1. Introduction and Profile

1 | S E P T A F Y 2 0 2 1 O p e r a t i n g B u d g e t

SEPTA’s History

Greater Philadelphia has evolved into a vibrant center of economic growth in the country and the Southeastern Pennsylvania Transportation Authority’s (SEPTA) multi-modal transit system has been a catalyst for this development: providing service to three states and giving riders in the region easy access to work, school, healthcare appointments, recreational outings, and major shopping destinations. The policy makers’ commitment to investing in transportation at the federal, state, and local level has enriched the lives of residents, visitors, and tourists.

SEPTA was created by the Pennsylvania General Assembly in 1964 as a solution to the need for a regional approach to transit, which would provide needed transportation for passengers, shared services to reduce expenses and greater access to

financial markets to help maintain and expand the system. On September 30, 1968, after five years of negotiations, SEPTA acquired the Philadelphia Transportation Company. The Philadelphia

Transportation Company was created January 1, 1940 and was responsible for the operation of buses, trolleys, trackless trolleys, and subway elevated lines: the Market-Frankford line and the Broad Street line in the Philadelphia area.

In 1983, SEPTA was required to take over all operations of Conrail’s passenger railroad to be integrated with the Authority’s existing transit services. Conrail, which was federally funded, had originally assumed responsibility for the passenger services of the Pennsylvania Railroad and the Reading Company in 1976. Both railroads went bankrupt due to the decline in the demand for the transportation of coal, the introduction of superhighways, and the advance of air travel. After a difficult transition and a 108 day strike by Conrail railroad workers, SEPTA’s Regional Rail Division was established. Between Fiscal Years 2012-2016, Regional Rail had outpaced transit in annual ridership growth and is a critical component in Southeastern Pennsylvania’s economic engine.

INTEGRATING SOUTHEASTERN PENNSYLVANIA’S TRANSIT NETWORK

1964

Created by PA State

Assembly

1968

Acquired Phila.

Transp. Company

1970

Acquired Phila.

Suburban Transp.

Company (Red

Arrow)

1976

Acquired Schuylkill

Valley Lines

(Frontier)

1983

Acquired Former Penn

Central and

Reading Railroads

1984

Opened “Center

City” Commuter

Tunnel

1985

Opened Service

on Airport

Line





Today, 56 years after its creation by the Pennsylvania General Assembly, SEPTA is the nation’s sixth largest transit system, with a vast network of fixed route services including bus, subway, light rail, trolleybus, and Regional Rail, as well as ADA Paratransit and Shared Ride programs. This network provides service in Bucks, Chester, Delaware, Montgomery, and Philadelphia Counties with connections into New Jersey and Delaware. SEPTA is also one of the region’s largest employers, with a workforce of approximately 9,500 employees.

SEPTA SERVICE PROFILE AT A GLANCE

FIXED ROUTES

REVENUE VEHICLES

STATIONS & STOPS

ANNUAL TRIPS

(in millions)

BUS & TROLLEYBUS 127 1,490* 13,054 108.9

MARKET-FRANKFORD LINE 1 218 28 39.9

BROAD STREET LINE 1 125 25 26.8

REGIONAL RAIL 13 396 155 26.3

LIGHT RAIL 8 159 670 18.0

NORRISTOWN HIGH SPEED LINE

1 26 22 2.5

ADA PARATRANSIT/SHARED RIDE

N/A 459 N/A 1.1

*Exact number varies as new buses are acquired and old vehicles are retired.



3 | S E P T A F Y 2 0 2 1 O p e r a t i n g B u d g e t Return toTable of Contents


4 | S E P T A F Y 2 0 2 1 O p e r a t i n g B u d g e t Return toTable of Contents



SEPTA Passengers

The following charts serve to illustrate the demographic distribution of SEPTA ridership. This data was recorded and compiled as part of the SEPTA 2018 Customer Satisfaction Survey. Due to COVID-19, the planned 2020 Customer Satisfaction survey has been postponed.

Annual Household Income of Passengers

18 to 25

14%

26 to 35

27%36 to 45

20%

46 to 55

18%

56 to 65

15%66 to 75

5%

76 or older

1%

Age of Adult Passengers

Under $15 k

18%

$15 k to < $25 k

15%

$25 k to < $35 k

15%

$35 k to < $50 k

16%

$50 k to < $75 k

17%

$75 k to < $100 k

8%

$100 k or more

11%




Gender of Passengers

48%

43%

7%5%

1%

African American

or Black

White Hispanic or Latino Asian or Pacific

Islander

Other

0%

10%

20%

30%

40%

50%

60%

Ethnicity of Passengers

Female

61%

Male

39%

Note: In the above chart, percentages total more than 100% as respondents were able to select multiple responses to this question to more accurately reflect an individual’s racial and ethnic background.




Customer Satisfaction Rating SEPTA conducted a Customer Satisfaction Survey from April 24, 2018 to May 4, 2018, resulting in 1,542 rider and 400 non-rider interviews (1,942 total respondents). Respondents had the option of taking the survey online or via telephone interview. Riders provided ratings on a scale of 0 – 10 and could provide observations on up to 3 modes taken within the last seven days prior to their interview. A total of 2,840 mode observations were collected. In 2018, the average overall SEPTA Modal Performance Satisfaction rating was a 7.3.

Note: In the above chart, “SEPTA Overall” score is weighted by mode ridership in order to be representative of overall rider population. Due to changes in methodology in how the survey was conducted, the results were deemed not comparable to previous years’ results.

Key Regional Transportation Trends

Transit Ridership Total ridership has decreased over the past five years due to a number of factors, such as increased competition, structural changes in ridership patterns, and moderate gas prices. The Fiscal Year 2020 decrease was primarily due to the Covid-19 impact on the region that commenced in mid-March 2020.

Note: Suburban includes both Victory and Frontier Transit Divisions.

FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20

City Transit 269.6 273.9 266.3 277.9 282.2 279.3 271.8 270.7 266.9 252.0 245.8 236.5 180.1

Suburban 20.1 20.2 19.7 20.7 21.8 22.0 21.7 22.0 21.5 21.6 22.5 22.2 17.1

Regional Rail 35.5 35.4 35.0 35.4 35.3 36.0 36.7 37.4 37.7 34.7 34.4 34.2 26.3

Total 325.2 329.5 321.0 334.0 339.3 337.3 330.2 330.1 326.1 308.3 302.7 292.9 223.5

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

Un

lin

ke

d P

ass

en

ge

r T

rip

s

SEPTA RIDERSHIP

7.4

7.8

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7.2

7.2

7.1

7.3

7.3

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

Regional Rail

Suburban Bus

Suburban Trolley

City Trolley

City Bus

Market-Frankford Line

Broad Street Line

SEPTA Overall




Driving Rates Automobile use trends underscore the extent to which transit is increasingly becoming a mode of choice for residents of Southeastern Pennsylvania. As transit ridership increases, driving rates decrease. Historically, the City of Philadelphia and Southeastern Pennsylvania driving rates have been roughly one-third and two-thirds the national urban average, respectively. In recent years, as national driving rates have rebounded with improving economic conditions, local driving rates have remained flat. The most recent miles traveled data available is 2018.

9.7 9.8 10.4 10.79.5 9.7 9.6

16.216.9

17.9 18.116.4 16.4

24.526.4

24.425.9

26.7

19.6

21.522.4 23.4

21.6

25.2

0

5

10

15

20

25

30

19

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DA

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MIL

ES

Daily Automobile Miles Traveled per Person (1991-2018)

PHILADELPHIA SOUTHEASTERN PA

SOUTH JERSEY US URBAN AVERAGE




Strategic Business Plan SEPTA’s former Strategic Business Plan was adopted by the Board in July 2014 for Fiscal Years 2015 through 2019. The plan positioned SEPTA to evaluate and take advantage of key trends and to meet the region’s evolving transportation needs. As the transportation industry continues to evolve faster than it ever has before, SEPTA is developing a new Strategic Business Plan to actively address these challenges and ensure that transit is the backbone of mobility across the region. The former strategic plan is available at www.septa.org/strategic-plan.

While we progress the next Strategic Business Plan, in the interim, we will continue to focus on goals that enhance SEPTA’s value proposition:

SEPTA’s VALUE PROPOSITION

Leaders in Southeastern Pennsylvania agree that mass transit:

Drives the Economy: The five counties of Southeastern Pennsylvania generate 42% of the state’s economic output on 5% of its land, a degree of economic productivity and density that is only possible with high-capacity mass transit.

Supports Equity: Using mass transit is more affordable than driving, saving the average Philadelphia household close to $1,000 in annual cost of living expenses.

Advances Sustainability: Using mass transit reduces carbon emissions from transportation, which at 28% is now the largest single sector source of carbon in the United States; in Philadelphia, transportation only represents 25% of carbon emissions thanks to a culture of low and no-carbon travel, including mass transit.

Promotes Public Health and Safety: Using mass transit is ten times safer than driving and promotes healthy lifestyles that meet physician recommendations for daily physical activity.




Balanced Scorecard of Key Performance Indicators

SEPTA’s former Strategic Business Plan established a “balanced scorecard” approach to performance management. The Key Performance Indicators (KPIs) were designed to guide strategy development based on a quantitative evaluation of progress during plan implementation. The KPIs were carefully selected to represent meaningful measures of achievement towards strategic objectives across all business units.

Progress updates on each KPI are posted quarterly at www.septa.org/strategic-plan.

The balanced scorecard has six key focus areas:

∗ Safety and Security: develop a safety-first culture

∗ Financial Efficiency: responsibly manage resources

∗ The Customer Experience: provide best-in-class transportation services

∗ Resource Management: implement best management practices

∗ State of Good Repair and Reliability: reduce the backlog of capital repair needs

∗ Employee Growth: attract, develop, and retain a diverse, healthy, and versatile

workforce

Safety and Security

Goal Statement: to develop a safety-first culture that results in fewer customer and employee incidents.

Employee Lost Time Injuries per 200,000 Work Hours

Injuries causing missed work divided by work hours times 200,000

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Actual Goal

Non-Railroad 2.67 2.86 2.74

Railroad 5.13 5.27 5.15

Total 4.0 3.8 3.28 3.35 3.28

Note: KPI reporting metrics were revised in FY 2019 to report lost time injury data by the railroad and non-railroad classification.

4.4 4.1 4.2 3.83.4 3.3

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

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T T

IME

RA

TE

EMPLOYEE LOST-TIME PER 200,000 HOURS




Vehicle, Passenger, and Station Incidents

Reported vehicle and passenger incidents per 100,000 miles; reported station incidents per 1,000,000 passenger trips

FY 2019 Actual FY 2020 Actual FY 2021 Goal

Vehicle Incidents 5.13 4.48 4.75

Passenger Incidents 3.71 3.38 3.51

Station Incidents 0.53 1.70 1.10

Note: The COVID-19 situation has caused a significant decrease to service and ridership which in turn has impacted the FY 2020 numbers. In light of this situation, in order to normalize the data, the FY 2021 goal is calculated as a 1% reduction of the average of the past two years instead of the usual 2%.

Financial Efficiency

Goal Statement: to responsibly manage resources in a manner that provides requisite budget stability to grow the system.

Operating Expenses per Unlinked Passenger Trip Goal: Change in SEPTA is Below Change in Philadelphia CPI-U and Industry CPI-U

Total operating expenses divided by total unlinked passenger trips

FY 2018 Actual FY 2019 Actual FY 2020 Actual FY 2021 Goal

Operating Expenses (in thousands)

$1,371,790 $1,411,366 $1,403,458 $1,530,984

Unlinked Passenger Trips (in thousands)

302,700 292,857 223,483* 293,293

Operating Expenses Per Unlinked Passenger Trip

$4.53 $4.82 $6.28 $5.22

*FY 2020 Passenger Trips were significantly lower than the prior year due to the impact of Covid-19.

$6.28

$5.22

$4.93

$3.87

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

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PE

NS

E P

ER

TR

IP

OPERATING EXPENSES PER UNLINKED PASSENGER TRIP

SEPTA VS. BENCHMARKS

SEPTA INDUSTRY PHILA CPI-U




Unlinked Passenger Trips per Capita

Total unlinked passenger trips divided by total five county SEPTA population

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021


Unlinked Passenger Trips (in thousands)

308,300 302,700 292,857 223,483 293,293

Regional Population (in thousands)

4,119 4,128 4,134 4,134* 4,134*

Unlinked Passenger Trips per Capita

74.85 73.33 70.84 54.06 70.95

*Reflects most recent estimated data available.Note: FY 2020 Passenger Trips were significantly lower than the prior year due to the impact of Covid-19.

• Other Measures

o New Route Utilization Criteria – As part of the SEPTA FY 2020 Annual Service

Plan, the SEPTA Service Standards and Process was revised to reflect new

route utilization criteria. These criteria reflect a peer review of nearly a dozen

large transit agencies in North America and metrics from PennDOT’s

performance review. While operating ratio data will still be collected and reported

upon, the evaluation now focuses on passengers per revenue hour (measuring

route productivity) and cost per passenger (measuring route effectiveness). In

addition, comparative evaluations will be made based on a new route

classification system, segmented into City, Suburban, Arterial, Expressway,

Fixed and Special Purpose. Any route falling in the bottom 15th percentile for

both passengers per revenue hour and cost per passenger will be identified as

candidates for possible evaluation and intervention.

A minimum economic performance standard is used for Regional Rail stations. A

station failing to meet this minimum standard will be targeted for evaluation as

part of a future Annual Service Plan. The evaluation will consider the station(s)

which have not met the minimum economic performance standard.

76.8 79.0 82.9 80.6 73.3

54.1

71.0

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UNLINKED PASSENGER TRIPS PER CAPITA

TREND




The evaluation will consider the station’s line, adjacent stations, available

amenities including parking, nearby Regional Rail lines, other local SEPTA transit

options, physical infrastructure constraints or opportunities for service, driving

and non-driving access to the station and nearby stations, trip-time impacts on

the overall line, planned or recent investments and the costs associated with

those investments.

• Other Financial and Productivity Goals

o Scheduled Service Requirements – 98% or higher of service operating as

scheduled.

o Accessibility by Elderly and Disabled – Achieve 100% of total requests for

ADA trips (639,000 ADA City Division and 303,000 ADA Suburban Division trips,

pre Covid-19).

o Vehicle Miles per Employee – 10,490 or more vehicle miles per employee

(includes miles in contracted services, Shared Ride, and ADA Paratransit).

o Administrative-to-Operating Employee Ratio – 1:20 ratio between

administrative employees and operating employees.

� Note: Operating employees includes anyone in Operations, Vehicle

Engineering, Transit Police, Engineering Maintenance and Construction,

and System Safety Divisions, Revenue Operations, Training and

Development, and Customer Experience and Advocacy.

Vehicles per Mechanic

A key staffing measure that establishes goals based on vehicle types reflecting the varying size, complexity, and condition of each fleet

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021


Bus and Trolleybus 3.1 3.3 3.2 3.1 3.0

City Trolley 1.8 1.9 2.0 2.1 1.6

Market-Frankford Line 3.4 3.5 3.3 2.8 3.5

Broad Street Line 1.9 2.1 2.1 2.0 2.5

Media-Sharon Hill Line 1.5 1.5 1.5 1.7 1.3

Norristown High Speed Line 2.1 2.0 2.1 2.4 1.7

Regional Rail 1.5 1.5 1.5 1.5 1.6

Note: Mechanics assigned to SEPTA’s vehicle overhaul program not included.

The Customer Experience

Goal Statement: provide best-in-class transportation services that meet or exceed customer expectations.

Commendations-to-Complaints Ratio

Total customer commendations divided by complaints received through media (mail, e-mail, phone, web)

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021


Commendations 2,904 3,265 3,249 2,776 N/A

Complaints 53,216 56,218 57,170 51,678 N/A

Commendations-to-Complaints Ratio 0.055 0.058 0.0568 0.0537 0.0570




Service Reliability Goal: Varies by Mode

Percentage of arrivals within 5 minutes, 59 seconds of schedule

FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Goal

SU

RF

AC

E

City/Suburban Bus

Allegheny 77% 79% 78% 80%

Callowhill 72% 73% 73% 74%

Comly 79% 81% 81% 82%

Frankford Bus 79% 80% 79% 81%

Frankford Trackless Trolley 74% 87% 87% 89%

Midvale 76% 78% 76% 78%

Southern 76% 77% 76% 78%

Frontier 80% 83% 81% 83%

Victory 78% 81% 79% 81%

City Trolley 73% 75% 70% 75%

Media-Sharon Hill Line 93% 87% 86% 92%

Norristown High Speed Line 98% 92% 94% 93%

RA

IL Broad Street Line 99% 99% 98% 98%

Market-Frankford Line 98% 97% 95% 98%

Regional Rail 87% 89% 89% 90%

Uptime of Mission Critical IT Systems

Percentage of time during which mission critical communication platforms are fully operational

FY 2018 FY 2019 FY 2020 FY 2021


SEPTA.org 99.99% 100% 100% 99.99%

Real-Time Application Program Interface (API)

99.40% 99.68% 99.89% 99.99%

Communications Activity Index

Composite index of activity on SEPTA’s customer facing electronic communications platforms

FY 2018 FY 2019 FY 2020 FY 2021


SEPTA.org 1K Page Views 109,225 100,073 71,707 N/A

@SEPTA_Social Activity 56,941 52,801 44,474 N/A

Mobile App Downloads 188,149 212,198 229,556 N/A

Control Center Tweets 43,255 34,775 27,401 N/A

Communications Activity Index 397,570 399,847 373,138 395,000




Resource Management

Goal Statement: to implement best management practices that ensure SEPTA remains a sustainable, high-performance and outcome-driven agency.

Procurement Turnaround Time Goal: 21 days for < $25K, and 40 days for $25K-$100K

Purchasing process efficiency within categories of procurements by dollar value

FY 2018 Actual FY 2019 Actual FY 2020 Actual FY 2021 Goal

< $25,000 Procurements (in days)

19.0 18.3 15.7 21.0

$25,000 to $100,000 Procurements (in days)

53.2 46.3 45.6 40.0

Carbon Footprint

Emissions Per Passenger Mile Traveled = pounds of carbon dioxide equivalents emitted divided by passenger miles traveled (compared with single-occupancy vehicle)

FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual** Goal

Diesel (in gallons) 13,653,993 13,300,565 12,555,733 N/A

Electricity (in megawatt hours) 475,214 478,436 451,644 N/A

Gasoline (in gallons) 2,435,652 2,498,435 2,358,523 N/A

Natural Gas (in cubic feet) 2,638,509 2,700,210 2,797,136 N/A

Heating Oil (in gallons) 227,002 188,262 179,062 N/A

Steam (in millions of pounds) 29,768 30,097 28,877 N/A

Total Emissions (in carbon dioxide equivalents)

806,650,084* 802,588,776 760,693,765 N/A

Passenger Miles (in thousands) 1,366,276 1,317,865 981,090 N/A

Emissions Per Passenger Mile Traveled

0.590 0.609 0.775 0.550

*Re-stated** All values presented for FY 2020 are preliminary estimates subject to change

Waste Diversion Rate

Diversion Rate = tons of recycled municipal waste divided by tons of total municipal waste

FY 2018 FY 2019 FY 2020 FY 2021


Recycled Municipal Waste (in tons) 14,769 833 57 N/A

Other Municipal Waste (in tons) 14,540 20,161 2,813 N/A

Diversion Rate 50.4% 4.0% 2.0% 5.0%

Note: FY 2019 and FY 2020 diversion rates were lower due in part to stricter recycling standards.




State of Good Repair and Reliability

Goal Statements: to reduce SEPTA’s backlog of capital repair needs in a way that improves safety, reliability, capacity, and the customer experience.

Major Capital Project Deadlines Achieved within 90 Days of Deadline

* Volume of total major project deadlines significantly impacted by COVID-19

Mean Distance Between Failures Goal: Varies by Mode

Employee Growth

Goal Statement: to attract, develop, and retain a diverse, healthy, and versatile workforce.

Incremental Improvement from Ongoing Focus on Women and Minority Hiring Efforts

7/1/17 7/1/18 7/1/19 7/1/20 7/1/21 Actual Actual Actual Actual Goal

Management (% out of total management employees)

Minority 46.1% 46.9% 49.0% 50.9% 51.0%

Women 19.8% 20.3% 21.1% 21.7% 22.0%

Professional (% out of total professional employees)

Minority 39.2% 39.4% 40.2% 40.6% 41.0%

Women 34.1% 33.9% 33.1% 32.7% 35.0%

Number of major project deadlines achieved within 90 days divided by total major projects with deadlines

FY 2018 FY 2019 FY 2020 FY 2021


Major Project Deadlines Achieved within 90 Days

66 56 49 N/A

Total Major Project Deadlines 78 66 55* N/A

Achievement Rate 84.6% 84.8% 89.1% 80.0%

Fleet miles traveled divided by mechanical failures requiring vehicle to be removed from revenue service

FY 2018 FY 2019 FY 2020 FY 2021


SU

RF

AC

E

City/Suburban Bus

Allegheny 7,525 6,842 7,437 7,327

Callowhill 7,817 7,855 8,822 7,993

Comly 13,867 12,497 12,807 13,446

Frankford Bus 14,734 14,378 15,391 14,847

Frankford Trackless Trolley 14,543 13,864 14,837 14,348

Midvale 7,184 7,297 8,252 7,385

Southern 7,380 8,128 9,417 7,909

Frontier 22,669 23,580 19,667 23,587

Victory 11,462 13,012 16,707 12,482

City Trolley 10,378 12,769 13,909 11,805

Media-Sharon Hill Line 17,139 24,073 27,341 21,018

Norristown High Speed Line 27,215 36,130 35,129 32,306

RA

IL Broad Street Line 127,360 112,710 145,757 122,436

Market-Frankford Line 103,442 103,056 129,796 105,314

Regional Rail 41,718 35,269 46,373 39,263


2. The Budget Process


Budget Development

The first step of the budget development process begins with a meeting attended by the Operating Budget and Planning and Strategic Initiatives staff in December to discuss the key initiatives for the upcoming fiscal year. These initiatives are incorporated into each division’s goals and funding is provided within the financial constraints determined by the Chief Financial Officer and the Deputy General Manager/Treasurer.

The next major step in the process occurs in January with the preparation of a draft service projection for the following fiscal year. This is a collaborative effort between the Operating Budget and Service Planning Departments and results in a detailed service projection and Authority-wide expense projection by mid-February.

The Operating Budget Department also meets with personnel from each staff and operating department to review specific budget requirements and potential issues for the following fiscal year. Based on these meetings and the Strategic Planning Initiatives, the service projection may then be revised if necessary. Departmental expense levels are set accordingly and preliminary authorization letters and the budget database template are distributed to all departments in March.

Operating and staff department personnel then populate the Corporate Performance Management (CPM) operating budget database template for submission. The Operating Budget Department reviews each submission and recommends corrections or revisions as necessary. The submissions are then compiled and the SEPTA Board is briefed.

Period for Public Comment The Operating Budget Department publishes SEPTA’s Operating Budget Proposal on the Authority’s Website and distributes it publicly in late March, thus beginning the period for public comment, which is open until the beginning of May. SEPTA’s Board Chairman appoints an independent hearing examiner to conduct public hearings in each of the five counties that SEPTA serves. Public hearings are then held in late April to inform the public and to solicit public comment on the proposal. SEPTA staff presents testimony and responds to inquiries from the public.

Note: Due to the State of Emergency declared by both the President of the United States and the Governor of the Commonwealth of Pennsylvania; the public health concerns created by the COVID-19 outbreak (coronavirus); and to support the health, well-being and safety of our community, the Southeastern Pennsylvania Transportation Authority four public hearings were held as virtual meetings in late May 2020. The hearing examiner issued a report with recommendations on June 2, 2020 and the Fiscal Year 2021 Operating Budget was adopted by the Board on June 25, 2020.

Adoption The hearing examiner evaluates the SEPTA staff proposal together with public commentary and issues a report to the Board in the beginning of May. Included in this report are recommendations the hearing examiner may choose to make as a result of his review. The SEPTA Board adopts a budget for the upcoming fiscal year at its regular May Board meeting on the fourth Thursday of the month.

Budget Amendment Subsequent amendments to the total budget are handled in the same manner as the annual budget process. That is, budget amendments would be subject to the same three phases of the annual process: budget development, period for public comment and budget adoption.




S M T W TH F S S M T W TH F S

Days Days

1 2 3 4 Cum 27 28 29 30 31 1 2 Cum

5 6 7 8 9 10 11 25 3 4 5 6 7 8 9 28

12 13 14 15 16 17 18 25 10 11 12 13 14 15 16 207

19 20 21 22 23 24 25 17 18 19 20 21 22 23

26 27 28 29 30 31 1 24 25 26 27 28 29 30

2 3 4 5 6 7 8 35 31 1 2 3 4 5 6 28

9 10 11 12 13 14 15 60 7 8 9 10 11 12 13 235

16 17 18 19 20 21 22 14 15 16 17 18 19 20

23 24 25 26 27 28 29

30 31 1 2 3 4 5 21 22 23 24 25 26 27

6 7 8 9 10 11 12 28 28 1 2 3 4 5 6 35

13 14 15 16 17 18 19 88 7 8 9 10 11 12 13 270

20 21 22 23 24 25 26 14 15 16 17 18 19 20

21 22 23 24 25 26 27

27 28 29 30 1 2 3 28 29 30 31 1 2 3

4 5 6 7 8 9 10 28 4 5 6 7 8 9 10 28

11 12 13 14 15 16 17 116 11 12 13 14 15 16 17 298

18 19 20 21 22 23 24 18 19 20 21 22 23 24

25 26 27 28 29 30 31 25 26 27 28 29 30 1

1 2 3 4 5 6 7 35 2 3 4 5 6 7 8 35

8 9 10 11 12 13 14 151 9 10 11 12 13 14 15 333

15 16 17 18 19 20 21 16 17 18 19 20 21 22

22 23 24 25 26 27 28 23 24 25 26 27 28 29

29 30 1 2 3 4 5 30 31 1 2 3 4 5

6 7 8 9 10 11 12 28 6 7 8 9 10 11 12 32

13 14 15 16 17 18 19 179 13 14 15 16 17 18 19 365

20 21 22 23 24 25 26 20 21 22 23 24 25 26

27 28 29 30

JULY 2020 JANUARY 2021

FEBRUARY 2021

SEPTEMBER 2020 MARCH 2021

AUGUST 2020

OCTOBER 2020 APRIL 2021

NOVEMBER 2020 MAY 2021

DECEMBER 2020 JUNE 2021

Fiscal Year Calendar

July 1, 2020 to June 30, 2021




Key Activities Dec-19 Jun-20 Jul-20 Aug-20

week or period ending date 31 4 11 18 25 1 8 15 22 29 7 14 21 28 4 11 18 25 2 9 16 23 30 30 31 8

1

SEPTA Management discussion of priorities and

Planning and Strategic Initiatives for the upcoming year

2 Schedule Public Hearings

3 Meetings with SEPTA’s operating and Staff departments

4

Develop draft service projection based on current

service and proposed FY 2021 levels

5 Develop overall and department projections

6 Budget Department review of submissions

7 Adjust overall and departmental projections

8 Revise Service Projections as necessary

9 Budget Update Presentation to GM Team

10

Distribute preliminary budget authorization letters to all

Staff and Operating Departments

11

Budget adjustments are input into Corporate

Performance Management (CPM) software

12 Review first draft of FY 2021 Operating Budget Proposal

13 Public Hearing Notice to Press Relations

14

Publish FY 2021 Operating Budget Proposal on SEPTA

website www.septa.org

15

Public Hearing Notice published in newspapers and

SEPTA website/posted at major transportation

centers/Associated Services for the Blind website

16 Prepare Public Hearing Testimony

17 Period for public commentary

18

Public Hearings held in City of Philadelphia and Suburban

counties (see note on page 17)

19 Report from the Hearing Examiner to Board

20 Board Budget Committee Briefing

21 Board adopts FY 2021 Operating Budget

22 Final budget adjustments to CPM

23

Publish Final FY 2021 Operating Budget Book on SEPTA

website

Jan-20 Apr-20Mar-20Feb-20 May-20


3. Fiscal Year 2021 Assumptions and Consolidated Budget


This section presents the Fiscal Year 2021 Operating Budget. In section 6, Fiscal Year 2019 and 2020 actual results are also presented for comparison. The Fiscal Year 2021 Operating Budget was prepared prior to the Covid-19 pandemic and will serve as the Authority’s baseline budget as the region continues to address the challenges of the Covid pandemic. Given the uncertainties surrounding the health and economic recovery of the region, it is clear that actual revenue, subsidy and expense results will differ from budget as was experienced in the last 4-months results for Fiscal Year 2020. The CARES Act funding that the Authority is eligible to receive along with careful management of operating expenses and service alignments matching ridership requirements during and after recovery will help address budget revenue shortfalls that will be experienced throughout the year.

Service The Fiscal Year 2021 Operating Budget of $1.53 billion in operating expenses assumed transportation service levels would remain generally consistent with Fiscal Year 2020 prior to the pandemic.

Revenue Pre-Covid, operating revenue for Fiscal Year 2021 was projected to increase $13.9 million or 2.6% higher than the current year budget driven by higher passenger revenue. The passenger revenue increase included a scheduled fare increase for Fiscal Year 2021 which has since been delayed until at least January 1, 2021. Other revenue was expected to increase due to higher advertising and shared ride program income offset by lower investment returns. The Authority will continue to aggressively pursue additional sources of non-farebox revenue such as increased advertising and real estate rentals.

Expenses Fiscal Year 2021 expenses total $1.53 billion and represents a 3% increase from the prior year budget. Fiscal Year 2020 actual results included significant unanticipated expense savings in self-insured healthcare, snow removal, and vehicle maintenance material expenses. In addition, service reductions to serve essential personnel only when stay at home measures were instituted across the region in March 2020 and various cost savings initiatives including a hiring freeze and restricted overtime resulted in significant labor and fringe benefit savings. The Fiscal Year 2021 budget includes normalized labor, fringe benefits, and claims costs while providing for higher Amtrak trackage access costs, service vehicle lease expenses, and other third party contract services.




State and Local Subsidy Fiscal Year 2021 state and local subsidies include a grant from the Pennsylvania Public Transportation Trust Fund. Act 44 of 2007 established the trust fund and Act 89 of 2013 amended Act 44. These acts dedicate state funding for public transportation agencies across the Commonwealth of Pennsylvania. Trust fund grants are required to be matched locally at 15%. Total projected State Operating Subsidy for FY 2021 is $736.8 million with a Local Match of $110.5 million.

The Commonwealth and counties also provide a 20% match of $11.8 million on federal subsidies received to fund Amtrak trackage lease expenses and certain debt service payments. Additionally, $1.0 million of funds are provided for lease expenses for copiers and communications antenna towers. Funding of $30.7 million is also provided by the Commonwealth for Debt Service with a Local Match of $1.0 million provided by the five counties.

Federal Subsidy Federal Subsidy includes Federal Preventive Maintenance funds of $36.6 million, Federal Capital Lease Subsidy of $47.3 million, and Capital Debt Service of $9.1 million.




FY 2021

Amounts in Thousands ('000) Budget

REVENUE

Passenger Revenue 480,574$

Shared Ride Program 16,250

Other Income 42,188

Investment Income 2,756

TOTAL OPERATING REVENUE 541,768$

EXPENSES

Labor and Fringe Benefits 1,088,773$

Material and Services 331,432

Injury and Damage Claims 24,711

Propulsion Power 27,313

Fuel 26,026

Vehicle and Facility Rentals 8,854

OPERATING EXPENSE 1,507,109$

Depreciation/Contributed Capital 23,875$

TOTAL EXPENSES 1,530,984$

DEFICIT BEFORE SUBSIDY (989,216)$

OPERATING SUBSIDY

Federal 93,028$

State 779,377

Local 112,451

Other 4,360

TOTAL SUBSIDY 989,216$

SURPLUS/(DEFICIT) -$


4. Financial and Budgetary Policies


FINANCIAL PLANNING POLICIES

Balanced Budget The SEPTA Board adopts a balanced budget, or short-term operating spending plan, before the start of each fiscal year in accordance with the enabling legislation of the Commonwealth of Pennsylvania. A balanced budget is one in which expected operating revenues and subsidies equal expected operating expenses. When a deviation from a balanced budget is foreseen or occurs, this is reported as an operating surplus or deficit.

Fiscal Year The Authority’s budget is prepared on a fiscal year basis, beginning July 1 and ending June 30, which is consistent with the financial statements.

Basis of Financial Reporting and Budgeting The Authority's annual financial statements are prepared using the economic resources measurement focus and the accrual basis in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units. Revenues are recognized in the period in which they are earned and expenses are recognized in the period in which they are incurred. The Authority distinguishes operating revenues and expenses from non-operating items in the preparation of its financial statements. Operating revenues and expenses generally result from the Authority's principal operation of providing passenger transportation service. The principal operating revenues are passenger fares and the principal operating expenses are related to the delivery of passenger transportation.

The budget is prepared on a similar basis as the annual financial statements, with the following exceptions:

• The budget includes depreciation net of amortization of contributed capital, while

the annual financial statements report gross depreciation. Amortization of

contributed capital has been replaced in the annual financial statements by capital

grant funding.

• The budget includes a resultant Surplus or Deficit, while the annual financial

statement reports a Change in Net Position.

• The budget includes investment income in operating revenue, while the annual

financial statements treat this item, and all other subsidies, as non-operating.

Conversely, route guarantees classified as operating revenue commencing in

Fiscal Year 2013 in the annual financial statements continue to be classified as an

operating subsidy within the budget. Additionally, interest expense is treated as

non-operating in the annual financial statements.

• The net actuarially determined other post-employment benefit (OPEB) obligation

recognized under Governmental Accounting Standards Board (GASB) Statement

No. 45 in 2008, which was replaced by GASB 75 and implemented by the

Authority in Fiscal Year 2018, has been excluded from budgeted expenses. The

expense impact of the annual unfunded pension liability change under GASB 68,

implemented by the Authority in Fiscal Year 2015, is also excluded from budgeted

expenses. Such costs are included in operating expenses in the annual financial

statements. The OPEB is funded and budgeted on a pay-as-you-go basis,

whereas pensions are funded and budgeted based on actuarially determined

contributions calculated by an independent actuary.




Long-Range Planning

SEPTA continually assesses the consequences of national, state, and local demographic, economic, travel, and development trends for SEPTA’s current and future operations, services, and capital projects. This assessment includes the evaluation of current and potential service levels in accordance with SEPTA’s Annual Service Plan and the City Transit, Suburban Transit, and Regional Rail Service Standards and Processes. This assessment forms the backdrop for SEPTA’s long-range planning and the basis for the five-year financial projections, which are included in the adopted budget for each fiscal year.

The five-year financial projection includes fare increases every three years and SEPTA anticipates the next fare increase will occur in Fiscal Year 2024. This, along with prudent oversight of expenditures, will facilitate balanced budgets in future years.

Asset Management SEPTA has established an internal control structure to ensure that assets are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled for the preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP). The Procurement, Supply Chain Management and Disadvantaged Business Enterprise Division is responsible for the purchase, lease, sale, and disposal of parts, equipment, supplies, repairs, and services utilized by the Authority. This includes the coordination and enforcement of federal, state, and local funding agency regulations for all approved capital expenditures. The principal areas of responsibility include compliance and support services, contract administration, purchasing, resource control, and production control. The specific function of this group is further defined in the departmental section of this budget document.

REVENUE POLICIES

Revenue Diversification The Authority continues to explore areas for revenue diversification and enhancement to supplement passenger revenue and subsidies. Such enhancements shall include, but not be limited to, developing new business and community partnerships, expanding the advertising program, selling naming rights of transit stations, identifying opportunities to serve new markets, and pursuing parking initiatives to increase ridership and parking revenue.

Fees and Charges The Authority’s fare structure has been implemented in accordance with legislation established by the Legislature of the Commonwealth of Pennsylvania and applicable federal legislation. Changes to SEPTA’s fare structure are subject to the guidelines established by this legislation, including a public hearing process.

One-time Revenues The Authority has adopted a policy whereby it does not rely on one-time revenues to finance ongoing operations.

Unpredictable Revenues Prior to the Covid-19 pandemic, there were no major revenue sources that the Authority believed to be unpredictable in nature. The Authority has adopted a policy whereby it does not rely on unpredictable revenues to finance ongoing operations. Because the recovery from the pandemic and its impact on operating revenue in Fiscal Year 2021 is so uncertain at this time, the CARES Act funding will help fulfill budget revenue shortfalls experienced next year.




EXPENDITURE POLICIES

Accountability All divisions within SEPTA are expected to adhere to budgeted guidelines. Managers are held accountable for operating within their authorized budget.

The spending plan is based both on an assessment of ongoing needs to maintain existing service levels and to introduce new programs. Due to external constraints on the Authority’s expense growth, expansion is limited to those programs exhibiting the highest degree of cost effectiveness and payback in future economies. Budgeting is done at the management center level and managers are provided with detailed variance reports on a monthly basis.

Numerous financial safeguards and controls are in place throughout the Authority to prevent wasteful or unnecessary spending. The Office of Innovation Department conducts assessments of various SEPTA operations and will recommend structural and process changes when deemed appropriate to ensure SEPTA operates as efficiently as possible. In addition, the Authority’s Internal Audit Department and numerous outside agencies, many of whom supply SEPTA with funding, regularly audit the Authority.

The Authority has established a policy of comparing actual expenditures to budget on a monthly basis for both operating and capital expenditures. For capital expenditures, this reporting is handled by the Project Control section of the Strategic Initiatives Department. For operating expenditures, reporting is handled jointly by the Operating Budget and General Accounting Departments of the Finance Division. In addition, each operating and staff department is responsible for periodic reporting and analysis of expenditures. Actions to bring the budget into balance are implemented by the General Manager, with input from staff. Actions such as fare increases or significant service changes require Board approval.

Service Stabilization Accounts The Authority has adopted a policy to maintain a prudent level of financial resources to protect against the need to reduce service levels or increase fares due to revenue/subsidy shortfalls and/or unanticipated one-time expenditures.

DESCRIPTION OF EXISTING DEBT AND DEBT SERVICE POLICIES

Revenue Refunding Bonds The Revenue Refunding Bonds are limited obligations of the Authority and the principal and interest thereon are payable solely from the revenues received by the Authority from the Pennsylvania Consolidated Statutes, including all moneys distributed to the Authority from the Public Transportation Assistance (PTA) Fund created under Article XXIII of the Pennsylvania Tax Reform Code of 1971, as amended.

On July 18, 2007, the Governor of the Commonwealth of Pennsylvania signed into law Act No. 2007 – 44 (“Act 44”), which, effective July 1, 2007, among other things, (a) repealed 74 Pa C.S. Ch. 13 (which included Section 1310); and (b) provides, in pertinent part that, notwithstanding such repeal, (i) the PTA Fund shall continue to receive the revenue the PTA Fund was entitled to receive on June 30, 2007, (ii) despite the repeal of 74 Pa. C.S. Ch. 13 and, in particular, Section 1310, transit entities that have outstanding obligations shall continue to receive money from the PTA Fund calculated and paid in the same manner as was provided on June 30, 2007, and (iii) money remaining in the PTA Fund after amounts are disbursed as described in (ii) above shall be transferred monthly to the Public Transportation Trust Fund established under 74 Pa. C.S. Ch. 1506.




The Authority, as a transit entity under Act 44, will continue to receive amounts distributed from the PTA Fund that are calculated and paid in the same manner as was prescribed prior to the repeal of Section 1310.

On November 25, 2013, the Governor of the Commonwealth of Pennsylvania signed into law Act No. 2013 – 89 (“Act 89”), which increased available Capital funding for transportation commencing in FY 2014. Act 89 has no effect on the amounts that the Authority is otherwise entitled to receive under Act 44 for repayment of its Revenue Refunding Bond obligations.

The Authority’s policy is to issue debt periodically to supplement federal and state grants in support of the Authority’s capital plan. There are no requirements to establish legal debt limits.

In March 2007, the Authority issued $131.7 million of Variable Rate Revenue Refunding Bonds, Series of 2007. The net proceeds from the sale of the 2007 Bonds were used to currently refund the Authority’s outstanding Special Revenue Bonds, Series of 1997 and to pay the premium for a debt service reserve fund insurance policy. The net proceeds of the 1997 bonds had been used to reimburse the Authority for a portion of the costs of certain capital projects; refund certain leases entered into by the Authority for a building and related equipment; pay the costs of certain capital projects and pay the premium for a debt service reserve fund insurance policy. In December 2012, the Authority converted the $97.95 million remaining outstanding principal amount of the 2007 bonds from the Daily Rate Mode to the Indexed Mode.

In October 2010, the Authority issued $222.5 million Revenue Refunding Bonds, Series of 2010 due in varying amounts through 2028, with annual interest rates ranging from 2% to 5%. The net proceeds from the sale of the 2010 Bonds, together with other funds of the Authority, were used to (a) currently refund the outstanding principal amount of the 1999 Special Revenue Bonds, Series A and Series B, (b) fund the termination payments and accrued amounts payable in connection with the termination of certain swap agreements and, (c) fund certain costs and expenses incurred in connection with the issuance and sale of the 2010 Bonds. The net proceeds of the 1999 Bonds had been used to finance a portion of the Market-Frankford subway-elevated line vehicle acquisition program; refinance a bridge loan for payment of a portion of the vehicle acquisition program; refund $73.2 million of the 1995A Bonds; reimburse the Authority for a portion of the costs of certain capital projects and pay a portion of the premium for a debt service reserve fund insurance policy.

On October 11, 2017, the Authority issued $59.97 million of Revenue Refunding Bonds, Series 2017 (the “2017 Bonds”). The 2017 Bonds are due in varying amounts with maturity dates of March 1, 2021 through and including March 1, 2028. The 2017 Bonds were issued at a premium and have yields ranging between 1.25% and 2.3%, and bear a 5% annual interest rate. The proceeds from the sale of the 2017 Bonds in the amount of $71.88 million were used to (a) advance refund a portion of the Authority’s Revenue Refunding Bonds, Series of 2010 (“Refunded 2010 Bonds”) in the aggregate principal amount of $65.84 million, and (b) fund certain costs and expenses incurred by the Authority in connection with the issuance and sale of the 2017 Bonds. Concurrently with the issuance of the 2017 Bonds, a portion of the proceeds along with other available moneys of the Authority, were irrevocably deposited into an escrow account pursuant to the terms of an Escrow Agreement and invested in Government Obligations, the maturing principal of and interest on which will be sufficient to pay the interest and principal on the Refunded 2010 Bonds as such payments become due. Upon the deposit of the funds for the advance refunding of the Refunded 2010 Bonds pursuant to the terms of the Escrow Agreement, the Refunded 2010 Bonds were deemed to no longer be outstanding under the Indenture.




On December 5, 2019, the Authority issued $17.825 million of Revenue Refunding Bonds, Series of 2019 (the “2019 Bonds”). The 2019 bonds are due in varying amounts with maturity dates of March 1, 2020 through and including March 1, 2028. The 2019 Bonds were issued at a premium and have yields ranging between 1.21% and 1.67%, and bear annual interest rates ranging from 3% to 5%. The proceeds from the sale of the 2019 Bonds in the amount of $20.58 million were used to (a) refund a portion of the Authority’s Revenue Refunding Bonds, Series of 2010 (“Refunded 2010 Bonds”) in the aggregate principal amount of $19.84 million, and (b) fund certain costs and expenses incurred by the Authority in connection with the issuance and sale of the 2019 Bonds. Concurrently with the issuance of the 2019 Bonds, a portion of the proceeds along with other available moneys of the Authority, were irrevocably deposited into an escrow account pursuant to the terms of an Escrow Agreement and invested in Government Obligations, the maturing principal of and interest on which will be sufficient to pay the interest and principal on the Refunded 2010 Bonds as such payments become due. Upon the deposit of the funds for the current refunding of the Refunded 2010 Bonds pursuant to the terms of the Escrow Agreement, the Refunded 2010 Bonds were deemed to no longer be outstanding under the Indenture.

Capital Grant Receipts Bonds On August 16, 2011, the Authority issued $201.6 million of Capital Grant Receipts Bonds, Series 2011 due in varying amounts through 2029 with annual interest rates ranging from 3% to 5%. The net proceeds from the sale of the 2011 Capital Grant Receipts Bonds were used to (a) finance the acquisition of 116 Silverliner V Regional Railcars, (b) finance the rehabilitation of Wayne Junction Intermodal Facility, (c) fund a deposit to the Debt Service Reserve Fund, and (d) fund certain costs and expenses in connection with the issuance and sale of the 2011 Bonds.

The Capital Grant Receipts Bonds, Series 2011 are limited obligations of the Authority and are payable solely from and secured solely by (I) all amounts received by the Authority from the “Grant Receipts”, (II) amounts on deposit in certain funds and accounts established under the Indenture, including investment earnings thereon, and (III) any and all other moneys and securities furnished from time to time to the Trustee by the Authority. Grant Receipts consist of all amounts received by the Authority after the date of issuance of the 2011 Bonds from its share of FTA Section 5337 State of Good Repair Funding, and for each Federal Fiscal Year thereafter. FTA Section 5337 State of Good Repair Funding is the successor to FTA Section 5309 Fixed Guideway Modernization Formula Funding.

On October 19, 2017, the Authority issued $102.30 million of Capital Grant Receipts Refunding Bonds, Series 2017 (Federal Transit Administration Section 5337 State of Good Repair Formula Program Funds), (the “2017 CGR Bonds”). The 2017 CGR Bonds are due in varying amounts with maturity dates of June 1, 2018, and June 1, 2022 through and including June 1, 2029. The 2017 CGR Bonds were issued with a premium and have yields ranging between 1.20% and 2.51%, and bear a 5% annual interest rate. The proceeds from the sale of the 2017 CGR Bonds in the amount of $123.07 million, together with other available moneys of the Authority, were used to (a) advance refund a portion of the Authority’s Capital Grant Receipts Bonds, Series 2011 (Federal Transit Administration Section 5309 Fixed Guideway Modernization Formula Funds) (the “2011 Bonds”), in the aggregate principal amount of $110.45 million, and (b) fund certain costs and expenses incurred by the Authority in connection with the issuance and sale of the 2017 CGR Bonds. Concurrently with the issuance of the 2017 CGR Bonds, a portion of the proceeds of the 2017 CGR Bonds and other moneys of the Authority were irrevocably deposited into an escrow account pursuant to an Escrow Agreement and invested in Government Obligations, the maturing principal of and interest on which will be sufficient to pay the interest and principal on the Refunded 2011 Bonds as such payments become due. Upon the deposit of the funds for the advance refunding of the Refunded 2011 Bonds pursuant to the terms of the Escrow Agreement, the Refunded 2011 Bonds were deemed to no longer be outstanding under the Indenture.




On July 29, 2020, the Authority issued $97.23 million of Capital Grant Receipts Revenue Bonds, Series 2020 (Federal Transit Administration Section 5307 Urbanized Area Formula Funds), (the “2020 CGR Bonds”). The 2020 CGR Bonds are due in varying amounts with maturity dates of June 1, 2021, through and including June 1, 2032. The 2020 CGR Bonds were issued with a premium and have yields ranging between 0.41% and 1.43%, and bear a 5% annual interest rate. The proceeds from the sale of the 2020 CGR Bonds in the amount of $120.72 million, together with other available moneys of the Authority, were used to finance the acquisition of approximately 140 diesel-electric hybrid buses and related project costs, as well as payment of the cost of issuance for the 2020 CGR Bonds.

EB-5 Loan for New Payment Technology On March 29, 2012, the Authority entered into an agreement with PIDC Regional Center LP XXVIII for a low cost, construction-like loan for an amount not to exceed $175 million to fund the SEPTA Key project. The SEPTA Key project is modernizing the Authority’s fare payment system by allowing direct fare payment with a variety of contactless devices including debit cards, credit cards and smart phones. The loan was made available to SEPTA under guidelines of the U.S. Immigrant Investor Program, sponsored by the United States Citizenship and Immigration Services (USCIS). The loan had three separate tranches of $35 million, $75 million and $65 million and the final drawdown occurred on January 31, 2017. This was an interest only loan with a rate of 1.75% and maturities ranging between 5 and 6 years. The Authority repaid the first tranche principal amount of $35 million that matured on May 30, 2017. The Authority utilized Federal and State Grants with local match to repay the final two tranche amounts of $75 million and $65 million which were due on June 30, 2019 and July 1, 2019, respectively.

Energy Service Company “ESCO” Lease/Purchase Agreement The Authority entered into a Master Equipment Lease/Purchase Agreement with Banc of America Public Capital Corp on November 24, 2015. There are two tranches of debt; tranche 1 has a principal amount of $4.2 million, and an interest rate of 2.37% and a final maturity of June 1, 2026; and tranche 2 has a principal amount of $14.0 million, an interest rate of 3.2%, and a final maturity of June 1, 2033. The installed equipment will serve to reduce the Authority’s energy consumption and the resultant annual operating savings are guaranteed by the ESCO to equal or exceed the annual debt service and other annual project-related expenses throughout the term of the agreement.

The Authority entered into a Master Equipment Lease/Purchase Agreement with PNC Equipment Finance, LLC on November 30, 2016. The total amount financed is $35.9 million, due in varying amounts through March 30, 2034 with an annual nominal interest rate of 2.83%. The equipment leased/purchased included the installation of various energy conservation measures through a third party agreement which will serve to reduce the Authority’s energy consumption and operating expenses. The measures undertaken included the construction of a Combined Heat and Power Plant (“CHP”) that will provide electricity to the Wayne Junction substation and Midvale bus maintenance facility, the installation of interior and exterior LED lighting upgrades to certain Authority owned buildings, and various other work to conserve energy. The resultant annual operating savings are guaranteed by the ESCO to equal or exceed the annual debt service payments and other annual project related expenses throughout the term of the agreement.

The Authority entered into a Master Equipment Lease/Purchase Agreement with Banc of America Public Capital Corp on July 30, 2019. The total amount financed is $12.8 million, due in varying amounts through February 1, 2037 with an annual interest rate of 2.969%. The equipment to be leased/purchased will include various energy conservation measures to reduce energy consumption at SEPTA’s 1234 Market Street Headquarters. The resultant annual operating savings are guaranteed by the ESCO to equal or exceed the annual debt service and other annual project related expenses throughout the term of the agreement.




EB-5 Loan for Equipment and Infrastructure On January 1, 2016, the Authority entered into an EB-5 loan agreement with Delaware Valley Regional Center, LLC, for an amount up to $300 million to partially finance various capital projects. On April 28, 2017, SEPTA borrowed $100 million under this agreement. This is an interest only loan with a rate of 2.0% and a maturity date of July 1, 2022. On November 1, 2017, the Authority borrowed an additional $90 million under this agreement. The loan bears an interest rate of 2.0% and will mature on November 1, 2022. On September 20, 2018 the Authority borrowed an additional $33 million under this agreement. The loan bears an interest rate of 2.0% and will mature on September 20, 2023. On March 11, 2019 the Authority borrowed an additional $14 million under this agreement. The loan bears an interest rate of 2.0% and will mature on March 11, 2024. On November 15, 2019 the Authority borrowed an additional $2.5 million under this agreement. The loan bears an interest rate of 2.0% and will mature on November 15, 2024. At this time, no additional EB-5 loan borrowings are anticipated under this agreement.

Revolving Line of Credit Agreement On September 1, 2019, the Authority entered into a $100 million Revolving Line of Credit Agreement (“Committed Line of Credit Note”) with PNC Bank, National Association, with an expiration date of August 31, 2020. The Note is unsecured and bears interest at the Daily Libor Rate plus a credit spread. The facility fee associated with the revolving line of credit varies depending upon the amount borrowed and outstanding during the one-year term. As of July 27, 2020, the Authority did not have an outstanding balance related to the Revolving Line of Credit.

On May 1, 2020, the Authority entered into a second $100 million Revolving Line of Credit Agreement (“Committed Line of Credit Note”) with PNC Bank, National Association, with an expiration date of April 30, 2021. The Note is unsecured and bears interest at the Daily Libor Rate plus a credit spread. The facility fee associated with the revolving line of credit varies depending upon the amount borrowed and outstanding during the one-year term. As of July 27, 2020, the Authority did not have an outstanding balance related to the Revolving Line of Credit.

Debt Limit The Authority does not have a debt limit, but must demonstrate the ability to repay prior to entering into a loan agreement or issuing bonds.

Debt Service The Authority has three series of Revenue Refunding Bonds (issued in 2007, 2017 and 2019), and three series of Capital Grant Receipts Bonds (issued in 2011, 2017, and 2020) currently outstanding. In March 2012, the Authority entered into an EB-5 loan agreement to fund the SEPTA Key Project, which was repaid, and in January 2016 entered into a second EB-5 loan agreement to partially finance various capital projects. In November of both 2015 and 2016, and July of 2019, the Authority entered into “ESCO” Lease/Purchase Agreements.

Debt Service Requirements Interest on the Series of 2007, Series of 2017, and Series of 2019 Revenue Refunding Bonds is payable semi-annually on March 1 and September 1, and interest on the Series 2011, Series 2017, and Series 2020 Capital Grant Receipts Bonds is payable semi-annually on December 1 and June 1. The aggregate debt service requirements for the Revenue Refunding Bonds and Capital Grant Receipts Bonds, the ESCO Agreements, and the EB-5 Loans, are summarized in the following tables:




Bond Debt Service Requirements (Amounts in Thousands)

Fiscal Year Interest* Principal Total

2021 $14,703 $36,940 $51,643

2022 13,640 37,690 51,330

2023 11,727 26,845 38,572

2024 10,405 28,180 38,585

2025 8,996 29,585 38,581

2026 7,517 31,060 38,577

2027 5,964 32,620 38,584

2028 4,333 32,995 37,328

2029 2,683 23,765 26,448

2030 1,495 9,485 10,980

2031 1,021 9,960 10,981

2032 523 10,455 10,978

TOTAL $83,007 $309,580 $392,587

*Interest on the Series 2007 Bonds is a synthetic fixed rate of 4.706%

ESCO Debt Service Requirements (Amounts in Thousands)

Fiscal Year Interest Principal Total 2021 $1,960 $2,950 $4,910 2022 1,680 3,092 4,772 2023 1,588 3,734 5,322 2024 1,479 3,768 5,247 2025 1,368 4,103 5,471 2026 1,248 3,965 5,213 2027 1,136 3,943 5,079 2028 1,022 4,236 5,258 2029 899 4,318 5,217 2030 773 4,510 5,283 2031 642 4,594 5,236 2032 509 5,291 5,800 2033 355 5,281 5,636 2034 210 4,443 4,653 2035 82 963 1,045 2036 53 1,003 1,056 2037 23 1,043 1,066

TOTAL $15,027 $61,237 $76,264

EB-5 Loan Debt Service Requirements (Amounts in Thousands)

Fiscal Year Interest Principal Total 2021 $4,790 - $4,790 2022 4,790 - 4,790 2023 1,907 190,000 191,907 2024 468 47,000 47,468 2025 23 2,500 2,523

TOTAL $ 11,978 $ 239,500 $ 251,478

A graph of the Authority’s outstanding debt service requirements is illustrated below:




Outstanding Debt Service Requirements

Note: The EB-5 Loan for Equipment and Infrastructure matures in Fiscal Year 2023 and the Authority plans to refinance the amount due at this time.

0

50,000

100,000

150,000

200,000

250,000

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Bond Debt Service Requirements ESCO Debt Service Requirements EB-5 Debt Service Requirements




STATEMENT OF CHANGES IN EQUITY

The comparative fiscal year Statement of Changes in Equity displays the Authority’s change in contributed capital as well as the change in its accumulated operating deficit, including the fiscal year operating financial results on a balanced budget reporting basis. The equity amounts below exclude the post-employment benefit and unfunded pension obligations recognized under GASB 45, 75, and 68, respectively. Operating surpluses are reducing deficits accumulated in prior years.

FY 2019 FY 2020 FY 2021

Actual Actual Budget

Contributed Capital:

Balance at Beginning of Year 3,793,831$ 4,026,572$ 4,105,072$

Capitalized Grant Property 619,586* 479,112 536,817

Capitalized Grant Property - Retirements (109,937) (68,384) (53,198)

Amortization (386,845) (400,612) (424,375)

Amortization - Retirements 109,937 68,384 52,873

Contributed Capital Balance at End of Year 4,026,572$ 4,105,072$ 4,217,189$

Operating Surplus/(Deficit):

Accumulated Operating Deficit, Beginning of Year (184,134)$ (182,054)$ (180,858)$

Operating Surplus 328 268 -

Unrealized Investment Gain/(Loss) 1,752 928 -

Operating Surplus/(Deficit) After Unrealized Investment Gain/(Loss) 2,080$ 1,196$ -$

Accumulated Operating Deficit, End of Year (182,054)$ (180,858)$ (180,858)$

Total Equity 3,844,518$ 3,924,214$ 4,036,331$

*Re-stated

(Amounts in Thousands)

Statement of Changes in Equity


5. Organizational Structure


City Transit Division

79 Bus Routes

2 Subway-Elevated

Lines

6 Light Rail (Trolley)

Lines

3 Trackless Trolley Lines

Victory Division

20 Bus Routes

1 High Speed Line

2 Light Rail (Trolley)

Lines

Frontier Division

25 Bus Routes

Regional Rail Division

13 Regional Rail Lines

The Pennsylvania General Assembly established the Southeastern Pennsylvania Transportation Authority (SEPTA) on February 18, 1964 to provide public transit services for Bucks, Chester, Delaware, Montgomery, and Philadelphia Counties. Over the years, SEPTA acquired the assets of several private transportation operators to form four operating divisions. This distinction permits the efficient implementation of various collective bargaining agreements and the computation of local subsidies. Although the revenue and costs are logically accounted for separately, the operating and staff departments exist in a matrix structure and function as a cohesive unit beneath the following four broad operating divisions:

City Transit Division SEPTA acquired the assets of the former Philadelphia Transportation Company in 1968, forming the current City Transit Division. The City Transit Division, which primarily serves the City of Philadelphia, operates 79 bus routes, 6 light rail (trolley) lines, 3 trackless trolley lines, and 2 subway-elevated lines.

Victory Division The Victory Division, formerly known as the Philadelphia Suburban Transportation Company, serves Chester, Delaware, and Montgomery Counties. Also known as Red Arrow until 1970, SEPTA’s Victory Division is comprised of 20 bus routes, 2 light rail (trolley) lines, and 1 high speed line.

Frontier Division The Frontier Division consists of 25 bus routes serving Bucks, Chester, and Montgomery Counties. These routes formerly came under the auspices of several private operators including Schuylkill Valley Lines, which was acquired in 1976.

Regional Rail Division The Regional Rail Division serves the City of Philadelphia, as well as Bucks, Chester, Delaware, and Montgomery Counties, with service to Newark, Delaware, and Trenton and West Trenton, New Jersey. The infrastructure and assets of regional rail were previously operated by the Pennsylvania and Reading Railroads. These regional rail lines were operated by Conrail from 1976 through 1982, and acquired by SEPTA in 1983.




SEPTA BOARD SEPTA is governed by a Board consisting of fifteen Directors. The City of Philadelphia and the Counties of Bucks, Chester, Delaware, and Montgomery each appoint two members to the Board. The Pennsylvania Senate and House collectively appoint four members and the Governor of Pennsylvania appoints one representative.

OPERATING AND STAFF DEPARTMENTS

Corporate Staff Board Staff Executive Staff Office of the General Manager Deputy General Manager/Treasurer Admin. Deputy General Manager/Operations EM&C and Vehicles

Audit and Investigative Services Internal Audit Office of the Inspector General

Communications Communications and Website Management Fulfillment Services Graphic Services Print Services and Sign Shops

Customer Experience and Advocacy Administration Customer Development and Advocacy Consumer Market Research and Analysis Customer Service Center

Deputy General Manager/Operations, EM&C and Vehicles DGM Direct Reports Vehicle Engineering Strategic Initiatives Real Estate

Employee Development/Relations Administration Career Resource Connection EEO/AA and Employee Relations Labor Relations Training and Development

Engineering, Maintenance and Construction

Maintenance of Way Bridges and Buildings

Finance Finance Administration Capital Budget and Grant Development Financial Services General Accounting Operating Budget Payroll Revenue, Ridership, Advertising and Sales

Human Resources Administration Employee Medical Services Compensation/HRIS Employee Business Services Recruitment Employee Benefit Services

Information Technology Administration Emerging and Specialty Technologies Project Services Technical Services Network Services

New Payment Technologies Office of General Counsel Administration Claims Corporate and Business Operations Video and Intake Operations Litigation Corporate Litigation Risk Management




OPERATING AND STAFF DEPARTMENTS

Operations Administration and Analysis Customized Community Transportation Rail Transportation – Regional Rail AGM Staff Control Center - Transit Rail Transportation – Subway/Elevated Surface Transportation Vehicle Equipment Maintenance

Planning and Strategic Initiatives Administration Office of Innovation Service Planning Strategic Planning

Procurement, Supply Chain and Disadvantaged Business Enterprise (DBE) Administration Contract Administration Disadvantaged Business Enterprise Program Procurement and Supply Chain Management

Public and Government Affairs Administration Media Relations Marketing and Promotions Government and Community Relations

Revenue Operations Administration Revenue Transportation and Collections Revenue Services Revenue Equipment Maintenance Revenue Compliance Railroad Revenue and Parking

System Safety System Safety Construction Safety

Transit Police Administration Office of Professional Responsibility Patrol Bureau Special Operations Bureau



Corporate Team Organization Chart (To Assistant General Manager level)


SEPTA

Board

Chairman

Pasquale T.

Deon, Sr.

SEPTA

General

Manager

Leslie S.

Richards

Deputy General Manager/

Treasurer

Richard G. Burnfield

Audit and Investigative Services

Robert J. Marron

Employee Development and

Relations

Stephanie K. Deiger

Finance

Thomas J. McFadden

Human Resources

Jacob T. Aufschauer

Procurement, Supply Chain

and DBE

H. Andy Abdallah

Customer Experience and Advocacy

Kim S. Heinle

Public and Government Affairs

Francis E. Kelly

Office of General Counsel

Gino J. Benedetti

Deputy General Manager/Operations, EM&C

and Vehicles

Robert L. Lund

Operations

Scott A. Sauer

System Safety

James W. Fox

Planning and Strategic Initiatives

Jody Holton


Consolidated

6. Three Year Comparison Fiscal Years 2019-2021


FY 2021

FY 2019 FY 2020 FY 2021 versus

Amounts in thousands ('000) Actual Actual* Budget FY 2020

REVENUE

Passenger Revenue 457,709$ 349,307$ 480,574$ 131,267$

Shared Ride Program 15,992 12,609 16,250 3,641

Other Income 41,017 38,463 42,188 3,725

Investment Income 3,229 3,067 2,756 (311)

TOTAL OPERATING REVENUE 517,947$ 403,446$ 541,768$ 138,322$

EXPENSES

Labor and Fringe Benefits 1,008,830$ 1,000,499$ 1,088,773$ 88,274$

Materials and Services 301,920 285,070 331,432 46,362

Injury and Damage Claims 16,490 36,684 24,711 (11,973)

Propulsion Power 29,807 25,440 27,313 1,873

Fuel 27,816 25,565 26,026 461

Vehicle and Facility Rental 6,376 9,073 8,854 (219)

OPERATING EXPENSE 1,391,239$ 1,382,331$ 1,507,109$ 124,778$

Depreciation/Contributed Capital 20,127$ 21,127$ 23,875$ 2,748$

TOTAL EXPENSES 1,411,366$ 1,403,458$ 1,530,984$ 127,526$

DEFICIT BEFORE SUBSIDY (893,419)$ (1,000,012)$ (989,216)$ 10,796$

OPERATING SUBSIDY

Federal 83,409$ 152,837$ 93,028$ (59,809)$

State 705,688 738,161 779,842 41,681

Local 100,665 105,107 111,986 6,879

Other 3,985 4,175 4,360 185

TOTAL SUBSIDY 893,747$ 1,000,280$ 989,216$ (11,064)$

SURPLUS/(DEFICIT) 328$ 268$ -$ (268)$

*Operating Revenue decrease in FY 2020 was due to the impact of Covid-19 on the region and ridershipcommencing in mid-March. Expenses were much lower due to savings initiatives implemented thatincluded service reductions, hiring freeze, and restrictions on overtime and other expenditures. EligibleCARES Federal Act subsidies of $66.6 million was recognized in Fiscal Year 2020.


City Transit Division



FY 2021



REVENUE


Shared Ride Program 15,992 12,609 16,250 3,641

Other Income 24,417 23,067 24,898 1,831



EXPENSES

Labor and Fringe Benefits 678,376$ 675,360$ 736,814$ 61,454$


Injury and Damage Claims 9,355 15,332 17,937 2,605

Propulsion Power 11,128 9,598 10,394 796

Fuel 21,380 19,645 19,980 335

Vehicle and Facility Rental 4,908 6,387 5,933 (454)

OPERATING EXPENSE 883,888$ 872,187$ 958,797$ 86,610$

Depreciation/Contributed Capital 14,222$ 14,400$ 17,454$ 3,054$

TOTAL EXPENSES 898,110$ 886,587$ 976,251$ 89,664$

DEFICIT BEFORE SUBSIDY (571,203)$ (632,191)$ (638,619)$ (6,428)$

OPERATING SUBSIDY

Federal 26,097$ 69,644$ 30,076$ (39,568)$

State 475,722 490,864 529,972 39,108

Local 68,269 70,615 77,216 6,601

Other 1,338 1,248 1,355 107

TOTAL SUBSIDY 571,426$ 632,371$ 638,619$ 6,248$

SURPLUS/(DEFICIT) 223$ 180$ -$ (180)$

*See explanation on page 37.


Victory Division



FY 2021



REVENUE


Shared Ride Program - - - -

Other Income 2,930 2,875 3,321 446

Investment Income 57 69 64 (5)


EXPENSES



Injury and Damage Claims 661 2,533 1,094 (1,439)


Fuel 3,582 3,320 3,311 (9)

Vehicle and Facility Rental 179 273 263 (10)


Depreciation/Contributed Capital 222$ 231$ 313$ 82$

TOTAL EXPENSES 102,042$ 100,761$ 110,206$ 9,445$

DEFICIT BEFORE SUBSIDY (73,978)$ (77,894)$ (80,839)$ (2,945)$

OPERATING SUBSIDY

Federal 3,393$ 8,929$ 3,344$ (5,585)$

State 61,417 60,001 67,396 7,395

Local 9,199 8,988 10,099 1,111

Other - - - -

TOTAL SUBSIDY 74,009$ 77,918$ 80,839$ 2,921$

SURPLUS/(DEFICIT) 31$ 24$ -$ (24)$

*See explanation on page 37


Frontier Division



FY 2021



REVENUE



Other Income 764 792 978 186

Investment Income 17 19 18 (1)


EXPENSES


Materials and Services 4,385 4,201 4,940 739

Injury and Damage Claims 120 462 340 (122)

Propulsion Power - - - -

Fuel 2,371 2,178 2,189 11

Vehicle and Facility Rental 57 86 83 (3)


Depreciation/Contributed Capital 52$ 53$ 72$ 19$

TOTAL EXPENSES 34,644$ 34,667$ 37,199$ 2,532$

DEFICIT BEFORE SUBSIDY (27,420)$ (28,870)$ (29,587)$ (717)$

OPERATING SUBSIDY

Federal 1,225$ 3,237$ 1,197$ (2,040)$

State 22,236 21,737 24,119 2,382

Local 3,332 3,258 3,616 358

Other 638 648 655 7

TOTAL SUBSIDY 27,431$ 28,880$ 29,587$ 707$


*See explanation on page 37


Regional Rail Division



FY 2021



REVENUE



Other Income 12,906 11,729 12,991 1,262



EXPENSES



Injury and Damage Claims 6,354 18,357 5,340 (13,017)


Fuel 483 422 546 124

Vehicle and Facility Rental 1,232 2,327 2,575 248$


Depreciation/Contributed Capital 5,631$ 6,443$ 6,036$ (407)$

TOTAL EXPENSES 376,570$ 381,443$ 407,328$ 25,885$

DEFICIT BEFORE SUBSIDY (220,818)$ (261,057)$ (240,171)$ 20,886$

OPERATING SUBSIDY

Federal 52,695$ 71,027$ 58,411$ (12,616)$

State 146,313 165,559 158,355 (7,204)

Local 19,864 22,246 21,055 (1,191)

Other 2,009 2,279 2,350 71

TOTAL SUBSIDY 220,881$ 261,111$ 240,171$ (20,940)$


*See explanation on page 37.


7. Financial Projections Summary of Assumptions


Passenger Revenue Pre-Covid, passenger revenue was expected to grow by 1% per year, except in Fiscal Year 2024, when the next scheduled fare increase will take effect.

Shared Ride Program This revenue category was forecasted to grow by approximately 1% each year over the five-year period.

Other Income The Other Income category was expected to increase by 1% annually when compared to the Fiscal Year 2021 budget. Income that is generated primarily from investments, real estate rentals, scrap sales, property damage recoveries, advertising, and parking lot fees are reflected in this category.

Expenses The overall expense growth rate is approximately 3% annually with fringe benefits expected to grow at a slightly higher rate due to the increased cost of healthcare. The other expense categories anticipate third party supplier’s price increases.

Subsidy The subsidy categories reflect the anticipated funding levels of the Federal, State, and required local match needed to balance the operating budget in Fiscal Year 2021 and beyond. Due to scheduled fare increases in Fiscal Years 2021 and 2024, the subsidy growth rate is lower in those years as compared to years with no increases.

Note: The 5-year Operating Budget projection was prepared prior to the Covid-19 pandemic. The uncertainties surrounding the economic recovery of the region on operating revenue and subsidies are expected to result in actual results that are likely to differ significantly from the baseline projection presented.


7. Financial Projections of Consolidated Budget


Budget

Amounts in thousands ('000) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

fare increase fare increase

REVENUE

Passenger Revenue 480,574$ 485,380$ 490,234$ 515,234$ 520,386$ 525,590$

Shared Ride Program 16,250 16,413 16,577 16,742 16,910 17,079

Other Income 44,944 45,393 45,847 46,306 46,769 47,237

TOTAL OPERATING REVENUE 541,768$ 547,186$ 552,658$ 578,282$ 584,065$ 589,906$

EXPENSES

Labor and Fringe Benefits 1,088,773$ 1,124,230$ 1,158,028$ 1,192,943$ 1,229,017$ 1,266,293$

Materials and Services 331,432 339,718 349,060 358,659 368,522 378,657

Injury and Damage Claims 24,711 25,452 26,216 27,002 27,812 28,647

Propulsion Power 27,313 27,859 28,416 28,985 29,564 30,156

Fuel 26,026 26,807 27,745 28,716 29,721 30,761

Other Expenses (Incl. Depreciation) 32,729 33,384 34,051 34,732 35,427 36,135

TOTAL EXPENSES 1,530,984$ 1,577,450$ 1,623,516$ 1,671,037$ 1,720,063$ 1,770,649$

DEFICIT BEFORE SUBSIDY (989,216)$ (1,030,264)$ (1,070,858)$ (1,092,755)$ (1,135,998)$ (1,180,743)$

OPERATING SUBSIDY

Federal 93,028 93,047 93,804 94,588 95,378 96,337

State 779,842 815,485 848,924 867,281 904,181 942,239

Local 111,986 117,328 123,682 126,394 131,902 137,585

Other 4,360 4,404 4,448 4,492 4,537 4,582

TOTAL SUBSIDY 989,216$ 1,030,264$ 1,070,858$ 1,092,755$ 1,135,998$ 1,180,743$

SURPLUS/(DEFICIT) -$ -$ -$ -$ -$ -$

Projection


8. Annual Service Plan Overview


Normally SEPTA would prepare an Annual Service Plan that describes service proposals suggested by the public, government agencies, elected officials and Authority staff, and present the technical and financial analyses that determines whether the proposals merit implementation. Because of the COVID-19 emergency and the pending Comprehensive Bus Network Redesign (CBNR), the Annual Service Plan was cancelled for this fiscal year. Instead, the supporting information normally included with the plan was provided in the FY 2021 Service Update. An FY 2021 Route Performance Evaluation Report was also prepared. Both reports are

expected to be released on the SEPTA website soon. This document is a product of the FY 2020 changes to SEPTA’s Service Standards and Process. It shows route-by-route performance for transit routes against two primary metrics; Passengers per Revenue Hour and Cost per Passenger.


8. Revenue Assumptions By Category


SEPTA receives revenue from several different sources. These can generally be categorized as revenues derived from operations and those obtained from government grants. Government operating assistance grants are classified as Operating Subsidy and discussed in the Operating Subsidy Section of this document. Operating Revenue is comprised of four major elements: passenger revenue, shared ride program, other income, and investment income. Just as the last 4-months of Fiscal Year 2020 operating revenue line items were negatively impacted by the pandemic, we expect the full Fiscal Year 2021 baseline budget that was prepared pre-Covid to be negatively impacted as well as the region continues to address the challenges of the Covid pandemic. The Authority plans to continue to carefully manage its operating expenses and align service to match ridership requirements while using eligible CARES Act funding to help fill budget revenue shortfalls.

Passenger Revenue The Fiscal Year 2021 Operating Budget Proposal for passenger revenue is $480.6 million and assumed a 2.8% pre-Covid growth in revenue from the prior year budget driven by a scheduled fare increase which has since been delayed until at least January 1, 2021 due to the pandemic.

Shared Ride Program SEPTA assumed responsibility for the operation of the state funded Shared Ride Program in the City of Philadelphia during Fiscal Year 1993. This year, pre-Covid revenue was budgeted at $16.3 million or 2.7% higher than the FY 2020 budget due to a slight increase in program ridership. The program is funded through the State Lottery, funds from the Philadelphia Corporation for the Aging, and Shared Ride fares. The Fiscal Year 2021 budget assumed a total of 599,000 Shared Ride trips.

Other Income Other income includes real estate rental income, parking lot fees, and advertising income. Pre-Covid, total projected revenue for this category was $42.2 million.

Investment Income Investment income is budgeted at $2.8 million for Fiscal Year 2021. Investment income results are correlated directly to financial market conditions and projected fund balances.


8. Ten Year Revenue Trends


The Authority analyzes a number of factors that affect the Operating Revenue budget. This includes an examination of national, state, and local demographic, economic, travel, and development trends. In addition, SEPTA evaluates current and projected service levels and other factors affecting ridership and revenue levels. Finally, the Authority considers historical trends in major revenue categories, as illustrated in the following charts:

Amounts in Millions

Note: FY 2020 results above were negatively impacted by the Covid-19 pandemic and the impact on the region. FY 2021 represents a pre-Covid baseline budget.

$0

$100

$200

$300

$400

$500

$600

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Budget

Passenger Revenue

$0

$5

$10

$15

$20

$25

$30


Budget

Shared Ride Program

$10

$15

$20

$25

$30

$35

$40

$45

$50


Budget

Other Income


8. Summary of Operating Revenue


Passenger Revenue

$480,574

88.70%

Shared Ride

Program

$16,250

3.00%

Other Income

$42,188

7.79%Investment Income

$2,756

0.51%

TOTAL OPERATING REVENUE = $541,768In Thousands


9. Subsidy Allocation and Detail


Introduction Total subsidies in the Fiscal Year 2021 Operating Budget represent $989.2 million and include the following categories: Federal, State, Local, and Other.

Assumptions

Federal The Federal Government's role in providing operating assistance has steadily declined. In Fiscal Year 1980, Federal Subsidy covered 18.8% of SEPTA's operating expenses. For Fiscal Year 2021, the total Federal Subsidy of $93.0 million covers only 6.1% of the total budgeted operating expense. The source of this subsidy is Federal Preventive Maintenance funds in the amount of $36.6 million, Federal Capital Lease Subsidy in the amount of $47.3 million, and Federal Capital Debt Service Subsidy of $9.1 million.

State On July 18, 2007, Act 44 of 2007 was signed into law by former Pennsylvania Governor Ed Rendell, and was intended to provide a long term funding solution for public transportation agencies throughout the Commonwealth of Pennsylvania. This legislation created the Pennsylvania Public Transportation Trust Fund (PTTF) which provides SEPTA and public transportation providers throughout the Commonwealth with dedicated annual funding for operating expenses. The Trust Fund is funded by 4.4% of state sales tax receipts and the proceeds from bonds issued by the Pennsylvania Turnpike Commission.

In November of 2013, the State Legislature passed Act 89. This legislation significantly increased funding for SEPTA’s Capital Program, allowing SEPTA to address its backlog of unfunded capital projects.

SEPTA and other Pennsylvania transit agencies are allocated state funds as determined by the following formula:

State Allocation Formula

Allocation Category Allocation

Percent

Number of Passengers 25%

Number of Senior Citizen Passengers 10%

Revenue Vehicle Hours 35%

Revenue Vehicle Miles 30%

Total 100%

Operating assistance is provided through Section 1513 of the Trust Fund. In addition, the Commonwealth of Pennsylvania provides state funds for capital lease costs and debt service. SEPTA’s debt service expenses and some lease costs are funded through the Capital Program of the Pennsylvania Public Transportation Trust Fund. The remaining leases are funded through Federal Capital Lease Subsidy and Federal Capital Debt Service Subsidy.




Local The local operating subsidy amount is budgeted at the level of 15% of the operating assistance portion (Section 1513) of the Trust Fund grant. This is a requirement for SEPTA to receive its full allocation from this state grant. The local subsidy requirement for each of SEPTA's funded divisions (City Transit, Victory, Frontier, and Regional Rail) is determined by the relative deficits before subsidy in each division as adjusted for Route Guarantees and Lease and Debt Service payments.

Within each funded division, the percentage of the local subsidy required from each county is shown in the table below:

City Regional

Transit Victory Frontier Rail

Bucks 0.27% 0.00% 37.00% 5.90%

Chester 0.00% 2.00% 17.00% 4.30%

Delaware 0.00% 86.00% 0.00% 8.80%

Montgomery 0.25% 12.00% 46.00% 11.00%

Philadelphia 99.48% 0.00% 0.00% 70.00%

Total 100.00% 100.00% 100.00% 100.00%

Local Operating Subsidy by County




The operating budget also makes an allowance within the standard formula, shown on the previous page, to properly accommodate the four county utilization of SEPTA’s Suburban Paratransit Service operated from the Victory Division. A usage-based allocation formula has been established within the Victory Division for suburban county ADA service. Each suburban county is billed based on the actual ADA Paratransit service used. The prospective utilization for Fiscal Year 2021 is as follows:

The City of Philadelphia also provides local match for the ADA Paratransit services as part of the City Transit Division match formula.

Route Guarantee Route Guarantee Subsidies are payments made under separate agreements between SEPTA and various local entities to fully fund the deficits generated by service extensions implemented by specific request. The Fiscal Year 2021 Route Guarantee Subsidy in the City Transit Division includes a University City partnership between Penn Health Systems, the University of the Sciences, and Children’s Hospital, which continues the “LUCY” (Loop through University City) circulator.

In the Frontier Division, the Bucks County Transit Improvement Project (TIP) was implemented in Fiscal Year 2001. It represented the restructuring of six routes with funding provided through a separate agreement with the county. Routes 127, 128, 129, and 130 are guaranteed under this agreement.

An agreement with the Delaware Transit Corporation provides for Regional Rail service to Wilmington and Newark, Delaware as an extension of the Wilmington/Newark Line.

Bucks 15%

Chester 9%

Delaware 48%

Montgomery 28%

Total 100%

Usage by County

Suburban Paratransit


9. Service Stabilization Fund


Prior to passage of Act 44 in July 2007, former Pennsylvania Governor Ed Rendell established the Transportation Funding and Reform Commission. The Commission identified future operating and capital funding needs for highways and transit. Act 44 represented a major milestone for transit funding in the Commonwealth of Pennsylvania. The intent of this legislation was to create a long term funding source which was stable, predictable, and with growth potential.

Until Act 44 passed, the majority of state operating subsidies were subject to the annual budget appropriations process. During the decade prior to Act 44, growth in operating subsidies was very limited. SEPTA, along with all public transit agencies in the Commonwealth, experienced very difficult challenges in balancing their operating budgets. In a number of years, SEPTA proposed significant fare increases and severe service reductions as initial measures to balance the Authority’s budget. These drastic measures were frequently diffused by eleventh hour, one-time actions.

The Act 44 and Act 89 funding programs are intended to provide a long-term funding solution. It is critically important for SEPTA to be prudent with the use of these subsidy funds to ensure that this objective is achieved. The Service Stabilization Fund is necessary to: 1) ensure long-term fiscal stability for SEPTA’s operating budget; 2) prevent a future budget crisis; and 3) maintain service levels. Based on future projected growth in state funding and the projected growth in SEPTA’s operating expenses and revenues, there will be fiscal years in which the growth in expenses will exceed the growth in state funding. In those years, the Service Stabilization Fund will be used to balance the operating budget avoiding substantial fare increases and/or service cuts.


9. Detail of Subsidies


City Regional Total

Transit Victory Frontier Rail SEPTA

Federal

Preventive Maintenance 25,347$ 3,344$ 1,197$ 6,712$ 36,600$

Capital Lease Subsidy - - - 47,332 47,332

Debt Service Subsidy 4,729 - - 4,367 9,096

Subtotal Federal 30,076$ 3,344$ 1,197$ 58,411$ 93,028$

State

Operating Subsidy - (Section 1513) 510,256$ 67,309$ 24,099$ 135,125$ 736,789$

Lease Cost Subsidy - (Section 1514) 679 64 20 165 928

Debt Service Subsidy - (Section 1514) 17,893 23 - 10,556 28,472

Match - Capital Lease Subsidy - (Section 1514) - - - 11,452 11,452

Match - Capital Debt Service Subsidy- (Section 1514) 1,144 - - 1,057 2,201

Subtotal State 529,972$ 67,396$ 24,119$ 158,355$ 779,842$

Local 77,216$ 10,099$ 3,616$ 21,055$ 111,986$

(Please see subsequent pages for Detail by County)

Other - Route Guarantees 1,355$ -$ 655$ 2,350$ 4,360$

TOTAL SUBSIDY 638,619$ 80,839$ 29,587$ 240,171$ 989,216$

Amounts in thousands ('000)


9. Summary of Operating Subsidies


State

$779,842

78.84%

Federal

$93,028

9.40%

Local

$111,986

11.32%Other

$4,360

0.44%

TOTAL SUBSIDIES = $989,216In Thousands


9. Detail of Local Subsidies and Other by County


City Regional Total

Amounts in thousands ('000) Transit Victory Frontier Rail SEPTA

Base PA Trust Fund Local Match

Bucks 206$ -$ 1,337$ 1,196$ 2,739$

Chester - 162 615 872 1,649

Delaware - 6,940 - 1,784 8,724

Montgomery 191 969 1,663 2,229 5,052

Philadelphia 76,141 - - 14,188 90,329

Subtotal 76,538$ 8,071$ 3,615$ 20,269$ 108,493$

Suburban Paratransit Local Match

Bucks -$ 310$ -$ -$ 310$

Chester - 181 - - 181

Delaware - 973 - - 973

Montgomery - 561 - - 561

Philadelphia - - - - -

Subtotal -$ 2,025$ -$ -$ 2,025$

Total Trust Fund Local Subsidy

Bucks 206$ 310$ 1,337$ 1,196$ 3,049$

Chester - 343 615 872 1,830

Delaware - 7,913 - 1,784 9,697

Montgomery 191 1,530 1,663 2,229 5,613

Philadelphia 76,141 - - 14,188 90,329

Total Trust Fund Local Subsidy 76,538$ 10,096$ 3,615$ 20,269$ 110,518$

Local Debt Service Subsidy

Bucks 2$ -$ -$ 24$ 26$

Chester - - - 17 17

Delaware - 1 - 35 36

Montgomery 2 - - 44 46

Philadelphia 651 - - 278 929

Subtotal 655$ 1$ -$ 398$ 1,054$

Local Lease Cost Subsidy

Bucks -$ -$ -$ 23$ 23$

Chester - - - 17 17

Delaware - 2 - 34 36

Montgomery - - 1 43 44

Philadelphia 23 - - 271 294

Subtotal 23$ 2$ 1$ 388$ 414$

Total Debt Service and Lease Subsidy 678$ 3$ 1$ 786$ 1,468$

Total Local Subsidy Required 77,216$ 10,099$ 3,616$ 21,055$ 111,986$

Total Other Route Guarantees 1,355$ -$ 655$ 2,350$ 4,360$


9. Summary of Local Subsidies by County


City Regional Total

Amounts in thousands ('000) Transit Victory Frontier Rail SEPTA

Total Local Subsidy

Bucks 208$ 310$ 1,337$ 1,243$ 3,098$

Chester - 343 615 906 1,864

Delaware - 7,916 - 1,853 9,769

Montgomery 193 1,530 1,664 2,316 5,703

Philadelphia 76,815 - - 14,737 91,552

Total Local Subsidy 77,216$ 10,099$ 3,616$ 21,055$ 111,986$

The total local subsidy required for the Fiscal Year 2021 Operating Budget is comprised of the following:

Total Trust Fund Local Subsidy (15% Match of Section 1513) $ 110,518

Debt Service Subsidy Local Match 1,054

Lease Cost Subsidy Local Match 414

Total Local Subsidy Required $ 111,986

Philadelphia

81.75%

Delaware

8.72%

Montgomery

5.09%

Bucks

2.77%

Chester

1.67%

Summary of Local Subsidies By County

Total = $111,986In Thousands


10. Expense Assumptions By Category


LABOR AND FRINGE BENEFITS The Fiscal Year 2021 labor and fringe benefit growth reflects pattern labor wage increases and benefit expenses as a result of negotiated labor agreements. The headcount increased, as initially proposed before Covid-19, by 167 positions for operator trainees and additional trainers in Surface, Subway-Elevated, and Regional Rail while providing for enhance safety in the track area. Positions were also added in Rail Vehicle Maintenance to support the M-4 vehicle bolster repair project, Regional Rail locomotives and revenue vehicles delivered in recent years.

SEPTA’s net labor cost includes a credit for labor expense from the operating to the capital budget for costs associated with capital projects.

MATERIAL AND SERVICES Material and Services includes replacement parts for fleet and infrastructure inventory as well as various services including utilities, contract repairs, snow removal, Amtrak trackage rights, and paratransit contract services.

The Fiscal Year 2021 budget assumes higher third party contract service and Amtrak trackage access costs.

SEPTA experienced an expense increase for Amtrak trackage access and costs with the implementation of PRIIA (Passenger Rail Investment and Improvement Act of 2008), effective October 2015. Through this Federal Act, Congress mandated that a standardized methodology be developed to allocate costs among Northeast Corridor (NEC) owners and operators that ensure each agency take full financial responsibility for its use of shared NEC infrastructure and related facilities.

INJURY AND DAMAGE CLAIMS Claims expense includes self-insured payouts, insurance premiums, and reserve adjustments. Fiscal year 2019 results included a favorable $6.1 million reserve adjustment and Fiscal Year 2020 included a $15.4 million unfavorable reserve adjustment. The unfavorable reserve adjustment accounted for a decrease in the present value discount rate and an increase in the Loss Adjustment Expense (LAE) liability. The Fiscal Year 2021 budget assumes an increase in insurance premiums along with a slight increase in the self-insured claims liability reserve.

PROPULSION POWER Revenue vehicle propulsion power expense is calculated based on estimated kilowatt-hour usage and rates. While the Fiscal Year 2021 budget incorporates lower contracted electricity supplier rates, pre-Covid budgeted consumption was expected to be higher than Fiscal Year 2020.


10. Expense Assumptions By Category


FUEL Fuel expense is based on budgeted miles of revenue vehicle operation, miles per gallon fuel economy, and estimated fuel rates. The Fiscal Year 2021 budget reflects an assumed decrease in the cost of fuel and slightly higher fuel consumption due to the service reductions instituted during the pandemic in Fiscal Year 2020. Budgeted fuel consumption is lower than the prior year budget due to better fuel economy as additional hybrid buses are entered into service.

RENTAL EXPENSE Rental expense covers all operating lease rentals for fixed facilities and short-term software, vehicle and equipment leases. Fiscal Year 2020 actual results and the Fiscal Year 2021 budget is higher than Fiscal Year 2019 due to an increased need for leased non-revenue vehicles, equipment, and the lease of the new Customized Community Transportation customer communication software that is currently being implemented.

DEPRECIATION Depreciation expense is the amortization of the cost of the Authority's fixed assets over their estimated useful lives net of the amortization of contributed capital. The net increase in Fiscal Year 2021 includes depreciation on ESCO projects, tenant improvements and digital advertising displays which are being offset by increases in rental and advertising income and a reduction in utility cost.


10. Ten Year Expense Trends


In developing the Operating Budget, the Authority considers issues that affect both the individual area of expense, as well as national, state, and local economic conditions. In addition, SEPTA focuses on historical trends in major expense categories, as illustrated in the following charts:

Amounts in Millions

Notes: (1) Fuel expense decrease in FY 2015-2017 is due to lower fuelprices which began to increase in FY 2018-2019.(2) Fiscal Year 2020 expense decreases above were due to servicereductions, a hiring freeze, and other cost savings initiativesimplemented as a result of Covid-19’s impact on the region.

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Budget

Net Labor and Fringe Benefits

$-

$20

$40

$60

$80

$100

$120

$140

$160

$180

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Budget

Departmental Material & Services

$42.0$45.4 $45.9 $43.8

$34.3

$23.9 $24.4$27.8 $25.6 $26.0

$-

$10

$20

$30

$40

$50

$60

$70

$80

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Budget

Fuel


10. Ten Year Expense Trends


Amounts in Millions

Notes: (1) Propulsion Power decrease in FY 2020 is related to lower contract supplier rates and lower usage due to service reductions during the Covid-19 pandemic.

(2) Injury and Damage Claims decreased dramatically in FY 2013-2016 due to theinstallation of surveillance cameras on vehicles and select stations. FY 2020 reflectsreserve increase related to the use of a lower discount rate and an increase in LossAdjustment Expense (LAE).

(3) Amtrak expense increase due to impact of Passenger Railroad Investment andImprovement Act (PRIIA), effective October 2015.

$-

$10

$20

$30

$40

$50

$60

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Budget

Propulsion Power

$- $5

$10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Budget

Injury and Damage Claims

$-

$10

$20

$30

$40

$50

$60

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Budget

AMTRAK Trackage Access


10. Summary of Operating Expenses


Labor and Fringe Benefits

$1,088,773

71.1%

Material and

Services

$331,432

21.6%Injury and Damage

Claims

$24,711

1.6%

Propulsion Power

$27,313

1.8%Depreciation/

Contributed

Capital

$23,875

1.6%

Fuel

$26,026

1.7%

Vehicle and Facility

Rentals

$8,854

0.6%

TOTAL OPERATING EXPENSES = $1,530,984In Thousands


10. FY 2021 Budget Detail of Expenses In 000’s


Division/Departmental Expenses Labor and Fringe

Material and

Services Total

OPERATIONS

Administration and Analysis 336$ 271$ 607$

Control Center Transit 5,070 175 5,245

Customized Community Transportation 10,058 6,777 16,835

AGM Staff 1,234 10 1,244

Rail Transportation-Subway-Elevated 56,116 1,211 57,327

Rail Transportation - Regional Rail 83,694 7,581 91,275

Surface Transportation 231,479 974 232,453

Vehicle Equipment Maintenance 124,666 49,709 174,375

Total Operations 512,653$ 66,708$ 579,361$

DGM Operations, EM&C, and Vehicles 5,916$ 7,057$ 12,973$

Engineering, Maintenance & Construction 82,932$ 26,422$ 109,354$

Transit Police 21,760$ 1,387$ 23,147$

STAFF DEPARTMENTS

Audit and Investigative Services 1,999$ 38$ 2,037$

Corporate Staff 2,931 195 3,126

Communications 1,332 757 2,089

Customer Experience and Advocacy 5,756 363 6,119

Deputy General Manager/Treasurer Administration 1,609 20 1,629

Employee Development/Relations 12,012 1,085 13,097

Finance 9,068 7,518 16,586

Planning & Strategic Initiatives 4,102 3,784 7,886

Human Resources 4,596 859 5,455

Information Technology 6,559 6,421 12,980

New Payment Technologies 126 12,848 12,974

Revenue Operations 14,154 18,859 33,013

Office of General Counsel 9,385 15,336 24,721

Procurement, Supply Chain & DBE 10,864 379 11,243

Public and Government Affairs 1,774 4,074 5,848

System Safety 2,035 986 3,021

Total Staff Departments 88,302$ 73,522$ 161,824$

Capital Labor Allocation/Rental Reclassification (9,787) (8,854) (18,641)

Total Departmental Expenses 701,776$ 166,242$ 868,018$

NON-DEPARTMENTAL EXPENSES

Fringe Benefits 386,997$ -$ 386,997$

Amtrak - 59,166 59,166

CCT - ADA Services - 34,300 34,300

CCT - Shared Ride Program - 24,200 24,200

Debt Service Interest and Fees - 16,456 16,456

Property Insurance/Other Claims Payouts, Net - 3,664 3,664

Services for Headquarters' Building - 5,384 5,384

Snow Removal and Other Weather Related Expenses - 5,650 5,650

Utilities - 18,822 18,822

Capitalized Costs and Other - (2,452) (2,452)

Total Non-Departmental Expenses 386,997$ 165,190$ 552,187$

OTHER OPERATING EXPENSES

Injury and Damage Claims -$ 24,711$ 24,711$

Propulsion Power - 27,313 27,313

Fuel - 26,026 26,026

Vehicle and Facility Rentals - 8,854 8,854

Depreciation/Contributed Capital - 23,875 23,875

Total Other Expenses -$ 110,779$ 110,779$

TOTAL EXPENSES 1,088,773$ 442,211$ 1,530,984$


10. FY 2021 Budget Allocation By Company In 000’s


Division/Departmental Expenses 1100 2100 2200 2300 3100 Total

OPERATIONS

Administration and Analysis 607$ -$ -$ -$ -$ 607$

Control Center Transit 1,258 3,372 516 - 99 5,245

Customized Community Transportation 14,165 1,359 - 1,311 - 16,835

AGM Staff 1,072 - - - 172 1,244

Rail Transportation-Subway-Elevated - 57,327 - - - 57,327

Rail Transportation - Regional Rail - 83 - - 91,192 91,275

Surface Transportation - 183,771 34,563 14,119 - 232,453

Vehicle Equipment Maintenance 234 118,113 11,886 5,671 38,471 174,375

Total Operations 17,336$ 364,025$ 46,965$ 21,101$ 129,934$ 579,361$

DGM Operations, EM&C, and Vehicles 5,343$ 6,480$ 5$ 1,145$ 12,973$

Engineering, Maintenance & Construction 285$ 68,559$ 6,727$ 10$ 33,773$ 109,354$

Transit Police 23,147$ -$ -$ -$ -$ 23,147$

STAFF DEPARTMENTS

Audit and Investigative Services 2,037$ -$ -$ -$ -$ 2,037$

Corporate Staff 3,126 - - - - 3,126

Communications 2,089 - - - - 2,089

Customer Experience and Advocacy 6,119 - - - - 6,119

Deputy General Manager/Treasurer Administration 1,629 - - - - 1,629

Employee Development/Relations 5,845 3,967 454 145 2,686 13,097

Finance 16,586 - - - - 16,586

Planning and Strategic Initiatives 7,886 - - - - 7,886

Human Resources 5,455 - - - - 5,455

Information Technology 12,908 - - - 72 12,980

New Payment Technologies 12,974 - - - - 12,974

Revenue Operations 14,473 305 - - 18,235 33,013

Office of General Counsel 14,975 6,277 306 186 2,977 24,721

Procurement, Supply Chain & DBE 9,691 369 - - 1,183 11,243

Public and Government Affairs 5,848 - - - - 5,848

System Safety 3,021 - - - - 3,021

Total Staff Departments 124,662$ 10,918$ 760$ 331$ 25,153$ 161,824$

Capital Labor Allocation/Rental Reclassification (8,932) (6,500) (312) (106) (2,791) (18,641)

Headquarters Allocation (161,841) 118,322 11,199 3,528 28,792 -

Total Departmental Expenses -$ 561,804$ 65,344$ 24,864$ 216,006$ 868,018$


Fringe Benefits 61,935$ 226,110$ 21,547$ 7,912$ 69,493$ 386,997$

Amtrak - - - - 59,166 59,166

CCT - ADA Services - 23,050 11,250 - - 34,300

CCT - Shared Ride Program - 24,200 - - - 24,200

Debt Service Interest and Fees - 6,963 59 16 9,418 16,456

Property Insurance/Other Claims Payouts, Net - 2,623 242 46 753 3,664

Services for Headquarters' Building 5,384 - - - - 5,384

Snow Removal and Other Weather Related Expenses - - - - 5,650 5,650

Utilities - 12,206 1,077 260 5,279 18,822

Capitalized Costs and Other (2,725) 372 3 9 (111) (2,452)

Headquarters Allocation (64,594) 47,225 4,470 1,408 11,491 -

Total Non-Departmental Expenses -$ 342,749$ 38,648$ 9,651$ 161,139$ 552,187$


Injury and Damage Claims -$ 17,937$ 1,094$ 340$ 5,340$ 24,711$

Propulsion Power - 10,394 1,233 - 15,686 27,313

Fuel - 19,980 3,311 2,189 546 26,026

Vehicle and Facility Rentals - 5,933 263 83 2,575 8,854

Depreciation/Contributed Capital - 17,454 313 72 6,036 23,875

Total Other Expenses -$ 71,698$ 6,214$ 2,684$ 30,183$ 110,779$

TOTAL EXPENSES -$ 976,251$ 110,206$ 37,199$ 407,328$ 1,530,984$


10. FY 2020 Actual Detail of Expenses In 000’s



Material and

Services Total

OPERATIONS

Administration and Analysis 361 842 1,203

Control Center Transit 4,200$ 14$ 4,214


AGM Staff 891 192 1,083

Rail Transportation-Subway-Elevated 51,758 1,024 52,782





DGM Operations, EM&C, and Vehicles 4,889$ 6,027$ 10,916$

Engineering, Maintenance & Construction 78,413$ 26,109$ 104,522$

Transit Police 19,280$ 1,037$ 20,317$

STAFF DEPARTMENTS

Audit and Investigative Services 1,675$ 23$ 1,698





Employee Development/Relations 10,522 644 11,166

Finance 8,188 4,696 12,884

Planning & Strategic Initiatives 3,115 867 3,982






Procurement, Supply Chain & DBE 9,326 1,525 10,851


System Safety 1,875 1,181 3,056


Capital Allocation/Rental Reclassification (6,961) (9,073) (16,034)



Fringe Benefits 360,505$ -$ 360,505

Amtrak - 56,143 56,143






Snow Removal and Other Weather Related Expenses - 937 937

Utilities - 17,854 17,854




Injury and Damage Claims -$ 36,684$ 36,684


Fuel - 25,565 25,565



Total Other Expenses 117,889$ 117,889$

TOTAL EXPENSES 1,000,499$ 402,959$ 1,403,458$


10. FY 2019 Detail of Actual Expenses In 000’s



Material and

Services Total

OPERATIONS

Administration and Analysis 333$ 72$ 405

Planning and Coordination 113 113

Control Center - Transit 4,967 11 4,978


Assistant General Manager Staff 678 3 681

Rail Transportation-Subway-Elevated 51,349 907 52,256




Vehicle Engineering and Maintenance 120,924$ 48,940$ 169,864$

Engineering, Maintenance and Construction 77,321$ 30,443$ 107,764$

Transit Police 20,224$ 859$ 21,083$

STAFF DEPARTMENTS

Audit and Investigative Services 1,506$ 19$ 1,525





Employee Development and Relations 10,358 1,022 11,380

Finance and Planning 10,890 5,484 16,374





Office of Innovation 335 779 1,114


Procurement, Supply Chain and DBE 8,997 340 9,337


System Safety 1,981 1,004 2,985


Capital Labor Allocation/Rental Reclassification (7,497) (6,376) (13,873)



Fringe Benefits 364,605$ -$ 364,605

Amtrak - 49,608 49,608






Snow Removal and Other Weather Related Expenses - 4,687 4,687

Utilities - 17,569 17,569




Injury and Damage Claims -$ 16,490$ 16,490


Fuel - 27,816 27,816



Total Other Expenses -$ 100,616$ 100,616$

TOTAL EXPENSES 1,008,830$ 402,536$ 1,411,366$


11. Fiscal Year 2021 Headcount Authorizations


HEADCOUNT DESIGNATIONS

Organization Overview

The organization, staffing, and expenses are shown for each division in the Departmental Summaries Section, including subtotals by department. Total headcount is further segregated by Operating versus Capital. The following definitions shall apply throughout this section:

Mgmt.………………..………….. Supervisory, administrative, and management employees.

Clerical.……………..………….. Unionized clerical, storeroom and customer service agent employees.

Maintenance...………………… Transportation, or Cashiers

Unionized maintenance and transportation employees, cashiers, and police officers.

Capital………………………….. Positions supported by federal, state, or local capital funding initiatives.

The Fiscal Year 2021 authorized headcount is at 9,894 employees and reflects an increase of 167 positions for operator trainees and additional trainers in Surface, Subway-Elevated, and Regional Rail while providing for enhanced safety in the track area. Positions were also added in Rail Vehicle Maintenance to support the M-4 vehicle bolster repair project, Regional Rail locomotives and revenue vehicles delivered in recent years.

Fiscal Year 2021 also incorporates a new division, Planning and Strategic Initiatives, formed during Fiscal Year 2020. This new division includes the Service Planning and Strategic Planning and Analysis departments that were previously a part of the Finance Division and the Office of Innovation department.

Several sections, including Strategic Initiatives and Real Estate from EM&C were moved to DGM Operations, EM&C and Vehicles. In addition, Vehicle Engineering and Maintenance was sub-divided, whereby Vehicle Equipment Maintenance was transferred to Operations and Vehicle Engineering is now reporting to DGM Operations, EM&C and Vehicles.




OPERATING HEADCOUNT

Mgmt. Clerical Maint. Transp. Cashier Total

Audit and Investigative Services 19 - 4 - - 23

Corporate Staff 16 - - - - 16

Communications 10 5 3 - - 18

Customer Experience and Advocacy 24 60 - - - 84

Deputy General Manager/Treasurer Admin. 9 - - - - 9

Deputy General Mgr./Ops. EM&C and Vehicles 23 4 5 - - 32

Employee Development/Relations 128 - 5 - - 133

Finance 84 38 - - - 122

Human Resources 37 17 - - - 54

Information Technology 68 5 - - - 73

New Payment Technologies 1 - - - - 1

Revenue Operations 109 44 48 - - 201

Planning and Strategic Initiatives 43 15 - - - 58

Office of General Counsel 95 23 - - - 118

Operations (Includes Vehicle Equip. Maint.) 722 113 1,725 3,702 320 6,582

Engineering, Maintenance and Construction 177 65 810 - - 1,052

Transit Police 63 - 210 - - 273

Procurement, Supply Chain and DBE 91 63 1 - - 155

Public and Government Affairs 21 - - - - 21

System Safety 24 - - - - 24

Vehicle Engineering 30 2 - - - 32

Total Operating Headcount 1,794 454 2,811 3,702 320 9,081




CAPITAL HEADCOUNT


Audit and Investigative Services - - - - - -


Communications - - - - - -

Customer Experience and Advocacy - - - - - -

Deputy General Manager/Treasurer Admin. 1 - - - - 1

Deputy General Mgr./Ops. EM&C and Vehicles 15 - - - - 15

Employee Development/Relations - - - - - -

Finance 2 - - - - 2

Human Resources - - - - - -

Information Technology - - - - - -


Revenue Operations - - - - - -

Planning and Strategic Initiatives 1 - - - - 1

Office of General Counsel - - - - - -

Operations (Includes Vehicle Equip. Maint.) 29 1 227 15 - 272

Engineering, Maintenance and Construction 143 7 314 - - 464

Transit Police - - - - - -

Procurement, Supply Chain and DBE 12 - - - - 12

Public & Government Affairs - - - - - -



Total Capital Headcount 247 10 541 15 - 813




TOTAL HEADCOUNT


Audit & Investigative Services 19 - 4 - - 23


Communications 10 5 3 - - 18

Customer Experience and Advocacy 24 60 - - - 84

Deputy General Mgr./Treasurer Admin. 10 - - - - 10

Deputy General Mgr./Ops. EM&C and Vehicles 38 4 5 - - 47

Employee Development and Relations 128 - 5 - - 133

Finance 86 38 - - - 124

Human Resources 37 17 - - - 54

Information Technology 68 5 - - - 73


Revenue Operations 109 44 48 - - 201

Planning and Strategic Initiatives 44 15 - - - 59

Office of General Counsel 95 23 - - - 118

Operations (Includes Vehicle Equip. Maint.) 751 114 1,952 3,717 320 6,854

Engineering, Maintenance and Construction 320 72 1,124 - - 1,516

Transit Police 63 - 210 - - 273

Procurement, Supply Chain and DBE 103 63 1 - - 167

Public and Government Affairs 21 - - - - 21



Total Headcount 2,041 464 3,352 3,717 320 9,894


11. Fiscal Years 2017 – 2021 Headcount Authorization


OPERATING HEADCOUNT BY FISCAL YEAR

2017 2018 2019 2020 2021

Audit and Investigative Services 20 20 20 20 23

Corporate Staff 14 18 17 17 16

Communications 19 18 18 18 18

Customer Experience and Advocacy 84 84 84 84 84

Deputy General Mgr./Treasurer Admin. 9 9 9 10 9

Deputy General Mgr./Ops. EM&C and Vehicles 32

Employee Development and Relations 122 129 129 133

Finance 170 170 171 171 122

Human Resources 160 53 53 53 54

Information Technology 71 71 71 71 73

Labor Relations 14

New Payment Technologies - 1 1 1

Revenue Operations 188 208 201 201

Office of Innovation 5 5 5 6

Planning and Strategic Initiatives 58

Office of General Counsel 118 117 117 117 118

Operations (Includes Vehicle Equip. Maint.) 5,129 4,684 4,646 4,718 6,582

Engineering, Maintenance and Construction 1,068 1,065 1,073 1,081 1,052

Planning, Project Coordination and Safety 1

Procurement, Supply Chain and DBE 149 147 147 149 155

Public and Government Affairs 20 21 21 21 21

System Safety 24 24 24 24 24

Transit Police 273 273 273 273

Vehicle Engineering and Maintenance 1,771 1,758 1,760 1,764

Vehicle Engineering 32

Total Operating Headcount 8,846 8,847 8,847 8,928 9,081




CAPITAL HEADCOUNT BY FISCAL YEAR

2017 2018 2019 2020 2021

Audit and Investigative Services - - - - -

Corporate Staff 1 2 - - 1

Communications - - - -

Customer Experience and Advocacy - - - - -

Deputy General Manager/Treasurer Admin. 1 1 1 1


Employee Development and Relations - - -

Finance 6 6 5 4 2

Human Resources - - - - -

Information Technology - - - - -

Labor Relations

New Payment Technologies 11 9 7 6

Revenue Operations - - -

Office of Innovation - - -

Planning and Strategic Initiatives - - - 1

Office of General Counsel - - - - -

Operations (Includes Vehicle Equip. Maint.) 36 20 21 21 272

Engineering, Maintenance and Construction 459 461 465 465 464



Public and Government Affairs - - - - -


Transit Police - - -

Vehicle Engineering and Maintenance 286 287 287 283


Total Capital Headcount 807 806 806 799 813




TOTAL HEADCOUNT BY FISCAL YEAR

2017 2018 2019 2020 2021

Audit and Investigative Services 20 20 20 20 23

Corporate Staff 15 20 17 17 17

Communications 19 18 18 18 18

Customer Experience and Advocacy 84 84 84 84 84

Deputy General Manager/Treasurer Admin. 9 10 10 11 10


Employee Development and Relations 122 129 129 133

Finance 176 176 176 175 124

Human Resources 160 53 53 53 54

Information Technology 71 71 71 71 73

Labor Relations 14

New Payment Technologies 11 10 8 7


Office of Innovation 5 5 5 6

Planning and Strategic Initiatives 59

Office of General Counsel 118 117 117 117 118

Operations 5,165 4,704 4,667 4,739 6,854

Engineering, Maintenance and Construction 1,527 1,526 1,538 1,546 1,516



Public and Government Affairs 20 21 21 21 21


Transit Police 273 273 273 273

Vehicle Engineering and Maintenance 2,057 2,045 2,047 2,047


Total Headcount 9,653 9,653 9,653 9,727 9,894


11. Headcount Authorization Cause of Change

Fiscal Year 2020 to Fiscal Year 2021


Division / Department

Fiscal Year 2020 Authorized Headcount

Cause of Change

9,727


• Three management positions added +3

Corporate Staff • One management position added

• Two management positions transferred to DGM/Ops.EM&C and Vehicles

• One management position transferred fromEngineering, Maintenance and Construction

0

Deputy General Manager/Treasurer Admin.

• One management position transferred to Planning &Strategic Initiatives

-1

Employee Development and Relations

• Four management positions added +4

Finance • 34 management positions transferred to Planning and

Strategic Initiatives

• 16 clerical positions transferred to Planning andStrategic Initiatives

• One management position transferred to InformationTechnology

-51

Human Resources • One management position added +1

Information Technology • One management position transferred from NewPayment Technologies

• One management position transferred from Finance

+2

New Payment Technologies • One management position transferred to InformationTechnology

-1


• Two management positions added

• One management position transferred from DeputyGeneral Manager/Treasurer Admin.

• 34 management positions transferred from Finance

• 16 clerical position transferred from Finance

• Six management positions transferred from Office ofInnovation

+59

Office of General Counsel • One management position added +1

Procurement, Supply Chain and DBE

• Three management positions added +3





Division / Department

Fiscal Year 2020 Authorized Headcount

Cause of Change

9,727


• One management position added

• Eight maintenance positions added

• Three management position transferred fromOperations/Planning and Coordination

• One management position transferred fromOperations/Rail Transportation-Regional Rail

• 11 management positions transferred to DGM/Ops.EM&C and Vehicles

• Four clerical positions transferred to DGM/Ops.EM&C and Vehicles

• 21 management positions transferred to DGM/Ops.EM&C and Vehicles

• Five maintenance positions transferred to DGM/Ops.EM&C and Vehicles

• Three management positions transferred toDGM/Ops. EM&C & Vehicles

• One management position from Vehicle Engineeringand Maintenance

• One management position from Operations/AGMStaffOne management position transferred to CorporateStaff

-30

Deputy General Manager/Operations, EM&C

and Vehicles

• Three management position transferred fromEngineering, Maintenance and Construction

• Two management positions transferred fromCorporate Staff

• One management position transferred from VehicleEngineering

• 11 management positions transferred fromEngineering, Maintenance and Construction

• Four clerical positions transferred from Engineering,Maintenance and Construction

• 21 management positions transferred fromEngineering, Maintenance and ConstructionFive maintenance positions transferred fromEngineering, Maintenance and Construction

+47

Office of Innovation Six management positions transferred to Planning and Strategic Initiatives

-6

Operations/Customized Community Transportation

• Two management positions added +2

Operations/AGM Staff • One management position transferred toEngineering, Maintenance and Construction

• One management position transferred from VehicleEquipment Maintenance

0





Division / Department Cause of Change

Operations/Control Center - Transit

• One management position added +1

Operations/Planning and Coordination

• Three management positions transferred toEngineering, Maintenance and Construction

-3

Operations/Rail Transportation-Subway-

Elevated


• 16 Transportation positions added

+17

Operations/Rail Transportation-Regional

Rail


• One clerical positions transferred to Engineering,Maintenance and Construction

+79

Operations/Surface Transportation



+24

Vehicle Engineering and Maintenance

• 65 management positions transferred to VehicleEngineering

• Four clerical positions transferred to VehicleEngineering

• 198 management positions transferred toOperations/Vehicle Equipment Maintenance

• 34 clerical positions transferred to Operations/VehicleEquipment Maintenance

• 1,746 maintenance positions transferred toOperations/Vehicle Equipment Maintenance

-2,047

Operations/Vehicle Equipment Maintenance

• 198 management positions transferred from VehicleEngineering and Maintenance

• 34 clerical positions transferred from VehicleEngineering and Maintenance

• 1,746 maintenance positions transferred from VehicleEngineering and Maintenance

• One management position transferred toOperations/AGM Staff

• One management position transferred to Engineering,Maintenance and Construction

• Five management positions added

• 14 maintenance positions added

+1,995





Division / Department Cause of Change

Vehicle Engineering • 65 management positions transferred from VehicleEngineering and Maintenance

• Four clerical positions transferred from VehicleEngineering and Maintenance

• One management position transferred to DGM/Ops.EM&C and Vehicles

+68

Total Increase/Decrease +167

Fiscal Year 2021 Authorized Headcount 9,894



12. Departmental Summaries forFiscal Year 2021



SEPTA

Corporate Staff


Corporate Staff

78| S E P T A F Y 2 0 2 1 O p e r a t i n g B u d g e t

Board Chairman

General Manager

Office of the

General Manager

Executive Staff

Board Staff

Overview

SEPTA’s Corporate Staff consists of a team of experienced transit professionals who are dedicated to providing vision and guidance to the Authority, while optimizing the best use of limited resources. The Corporate Staff strives to partner with stakeholders to promote public transit service as a cost-effective, viable travel option for access to work, school, medical service, shopping, leisure activities and tourism. The Corporate Staff is also committed to operating and managing a system which meets the highest standards for customer and employee safety while providing quality services.


Corporate Staff


Headcount

OPERATING HEADCOUNT

Mgmt. Clerical Total

Board Staff 4 - 4

Executive Staff 7 - 7

Office of the General Manager 5 - 5

Total Operating Headcount 16 - 16

CAPITAL HEADCOUNT


Board Staff - - -


Office of the General Manager - - -

Total Capital Headcount 1 - 1

OPERATING HEADCOUNT


Board Staff 4 - 4


Office of the General Manager 5 - 5

Total Headcount 17 - 17

Budget Amounts in Thousands (‘000)

Net Labor

Material & Services Total

Board Staff $ 544 $ 65 $ 609

Executive Staff 1,560 18 1,578

Office of the General Manager 827 112 939

Total $ 2,931 $ 195 $ 3,126


Corporate Staff


Principal Responsibilities

Board Staff Prepares and attests to all Board documentation generated from committee and Board meetings as well as advising and consulting with the Board on all Board-related matters. The Board staff includes a Secretary to the Board, an Assistant Secretary to the Board, a Controller to the Board, and a Board and Government Liaison.

Executive Staff Manages and directs the daily functions of the Authority. Executive Staff includes the division leaders reporting directly to the General Manager. Collectively, they are responsible for the operation, administration, and financial management of the Authority.

Office of the General Manager Oversees all SEPTA services and operations. Along with the SEPTA Board, provides leadership and direction for the Authority.

Fiscal Year 2021 Goals and Business Initiatives

SEPTA’s former Strategic Business Plan for Fiscal Years 2015 through 2019 established the framework for corporate goal-setting. SEPTA is currently developing an update to the plan. The former strategic plan is available at www.septa.org/strategic-plan. SEPTA’s “Building the Future” program features a series of initiatives directed towards these corporate goals, grouped into the following five focus areas:

GOAL OVERVIEW

The Customer Experience Meeting or exceeding rising customer expectations

Workforce Development and

Support

Attracting and retaining a diverse, highly-skilled, and

versatile workforce

Rebuilding the System Reducing the backlog of capital repair needs

SEPTA is a Business Responsibly managing resources to grow the system

Safety and Security as the Foundation

A safety-first corporate culture


Corporate Staff


PLANNING FOR A SAFE RETURN TO TRAVEL As part of a COVID-19 Recovery Planning Process, SEPTA has convened six internal Plan-Ahead Teams covering all aspects of SEPTA, including the services we provide, how our workplaces are designed, and the impacts on our finances. In total, over 150 employees have been involved, plus external experts in the transportation industry who are helping us to review best practices not only from our peers in the U.S., but also global cities who may be ahead of our region on the pandemic curve. The Plan-Ahead Teams were convened to identify strategies to move forward and provide advice and recommendations to leadership using the following goals to guide their efforts:

1. Recognize and adapt to a new normal.2. Anticipate changes in customer needs and behaviors.3. Support the region in its recovery.4. Identify opportunities for improvement and innovation.5. Be agile and flexible in decision-making.6. Provide clear, consistent, and intuitive communication.

From these goals emerged a 10-point action plan for safe return to travel: 1. Enhancing cleaning and sanitizing: Efforts include sanitizing every vehicle at leasttwice a day; sanitizing high-touch surfaces on trains, buses, trolleys and facilities;reallocating resources to work around-the-clock cleaning, disinfecting, and overnight power washing all open stations; utilizing EPA recommended products. SEPTA is alsoimproving air filtration on buses and trolleys by leaving roof hatches open for betterairflow in good weather and changing air filters more frequently.

2. Testing and evaluating innovative cleaning solutions and procedures: We arecoordinating with our industry peers and experts to test and evaluate emerging sanitizingtechnology. Only products and/or products that meet our rigorous testing standards willbe added to SEPTA cleaning protocols.

3. Increasing and adapting Service: As shelter-in-place and business closurerestrictions ease in the region, SEPTA has expanded service to reduce crowding andallow for social distancing. Schedules may be modified to spread service more equallythroughout the day to accommodate those who can travel at less crowded times. Viewcurrent schedules at http://septa.org/schedules/.4. Requiring and providing facial coverings: As more people return to traveling onSEPTA, we want to make sure they feel safe and comfortable. All SEPTA employees arerequired to wear masks or face coverings. Riders are also required to wear masks notonly to protect themselves but also other riders, operators, and train crews. The CDCrecommends wearing cloth face coverings in public settings where other social distancingmeasures are difficult to maintain and riders have made it clear that requiring facialcoverings is a priority for them to feel safe returning to riding public transit. Customersare encouraged to contact SEPTA Customer Service or Railroad Passenger Services forassistance in finding where to obtain a mask.

5. Social distancing initiatives: SEPTA has installed decals on seats and floors toindicate appropriate customer spacing. We’re adding similar signage and indicators in

stations and on platforms to remind customers to maintain a safe distance from one another. To give riders more room, SEPTA reintroduced longer articulated buses. We areasking customers to exit buses and trolleys from the rear doors to maintain a safe distance between operators and other riders who are boarding and paying their fares.


Corporate Staff


6. Prioritizing the health of our employees: SEPTA provides masks, neck gaiters,gloves, and hand sanitizer on an ongoing basis to every employee who needs them toensure they have the required equipment. We have implemented social distancingprotocols at all work locations including shops, districts, and crew facilities. Operatorbarriers were installed on all in-service vehicles to reduce their risk of exposure to thevirus. SEPTA has implemented temperature checks and free COVID-19 testing foremployees at various work locations.7. Stepping up our communication to our customers: Our COVID microsite

http://septa.org/covid-19 provides up-to-date content and the latest information to ourcustomers. We are also utilizing all our social media accounts on Facebook, Instagram,and Twitter to update customers on the latest SEPTA COVID announcements andservice impacts. We are beginning the process of a full website overhaul to ensure wecan update our website more quickly and in a more streamlined fashion in the future.Robust traditional communication channels via phone at 215-580-7800 and onlinewebform are monitored during expanded business hours seven days per week.

8. Leveraging data and technology to improve the customer experience. SEPTAwill soon be installing additional automatic passenger counters for all of our vehicles,which will allow us to provide real-time vehicle crowding information to customers. We’realso developing new tools to improve real-time arrival information, including moreaccurate predicative arrival times. This enhanced information can help customers makemore informed decisions on when, how and where to travel to avoid crowding.

9. More opportunity for contactless payment with Key. To reduce contact during ourcustomers’ travel experience, we are going to take advantage of the full functionality ofour SEPTA Key Card. Minimizing use of cash for fare payment will protect bothcustomers and employees. More details on all the convenient ways to obtain a key cardcan be found at www.septa.org/key.10. Planning ahead for what’s next: There are a few ways the next year could unfold,and we have to look at and prepare for a number of possibilities. This starts withscenario planning, which allows us to prepare for a number of outcomes quickly.Scenario Planning is a tool used to help guide decision-making against a broad range ofpossibilities, particularly in the face of a monumental crisis such as the current pandemic.It can provide an understanding of the potential spectrum of impacts and help definepotential responses through different stages of crisis. SEPTA engaged an internationalmanagement consulting firm with specific expertise in the transit industry, to help assessthe range of potential crisis and recovery trajectories by incorporating various ridershipimpactors across a number of different themes.

CORPORATE STRATEGIC INITIATIVESWhile the pandemic recovery timeline and the next new transportation technology or development may be unknown at this time, we have identified three Strategic Initiatives that will be at the core of SEPTA’s ability to proactively adapt moving forward. Progressing these initiatives will provide SEPTA the foundation for an agile approach that responds to our customers and the changing needs of our region as we face the challenges that lie ahead

1) Customer Experience: Every single interaction with the public needs to be seamlessto create a high-quality experience.o Initiatives:

� Streamline communication functions within SEPTA to improve processes to ensure that clear, consistent and intuitive messages reach our customers.

� Update SEPTA’s website to provide more responsive design that exceeds currents best practices and provides users with the information they need when and how they need it – on mobile or desktop.


Corporate Staff


� Create a wayfinding master plan for SEPTA’s Rail Transit Network that unifies the Broad Street Line, Market Frankford Line, Norristown High Speed Line, City Trolley (10 , 11, 13, 34, 36), Suburban Trolleys (101,102) and the Route 15 and treats them as one network with consistent standards.

2) Business Process Modernization: Continue to find opportunities to streamlineprocesses and build an agile organization.o Initiatives:

� Progress Efficiency Program to identify target expense reductions and develop strategies to achieve savings.

� Progress data-driven decision-making processes that allow SEPTA to make informed decisions quicker. This includes migrating to less-manual, more systematic data storage and analysis programs that create linkage between existing data sources and systems. Ultimately, better data sources and consistent analysis systems will allow SEPTA to be more responsive to changing conditions and ensure that services are meeting the needs of our region.

3) Planning for the Future: SEPTA will continue to be the core of the region’s mobility –but what does that mean? We must face immediate challenges head-on.o Initiatives:

� Create a clear Strategic Plan that outlines a long-term vision and guiding principles for SEPTA based on extensive public engagement, analysis of ridership patterns, and changing mobility trends. The Strategic Plan will serve as the framework for decision-making that prioritizes projects and programs that meet the needs of the region as we move forward.

� Develop a network plan for each of SEPTA’s distinct networks: Bus, Rail Transit, and Regional Rail that build on the guiding principles identified through a new Strategic Plan with an extensive engagement process to create one unified transit system. This starts with progressing Comprehensive Business Network Redesign (CBNR) and developing master plans for both Regional Rail and the Rail Transit network.


Corporate Staff


CORPORATE BUSINESS INITIATIVES

Customer Experience Initiatives: • Plan for next Customer Satisfaction Survey and implement action plans

• Advance SEPTA Key deployment, finishing roll out on Regional Rail, initiating CCT, andplan for “Key 2.0”

• In stations: Progress countdown clocks on Broad Street and Market-Frankford Lines,Intensify cleaning efforts across the system

• Continue partnerships to provide resources to vulnerable populations

• Prepare facilities and provide Ambassador support for major events, including FlowerShow, Broad Street Run, and Welcome America

• Minimize customer disruption on major construction projects, including SouthwestConnection, Trolley Blitz, 30th Street Station and 5th Street Station

• Revamp public website, www.septa.org

Regional Rail Network Initiatives: • Infrastructure: Continue to advance construction of Elwyn to Wawa Restoration to a new

station at Route 1 in Middletown; continue next phase of Regional Rail Stone Arch Bridgerehabilitation program, advance design and construction for 30th Street West Catenaryreplacement, complete phase 3 of the Southwest Connection Improvement Program

• Vehicles: Progress delivery of Multi-Level rail cars and continue to upgrade Frazer Yardto accommodate these vehicles

• Power: Advance overhaul of Lansdale, Hatboro, and 12th Street and Portal, Neshaminy,Bethayres and Yardley railroad substations

• Stations: Advance construction at Ardmore Transportation Center and Conshohockenstation

Rail Transit Network Initiatives: • Trolleys: Advance conceptual design efforts including Pole-to-Pan Conversion, Station

Accessibility and Power Distribution Studies; develop Vehicle Specification; conduct trolleytunnel maintenance blitz

• Stations (CTD): Advance design of Tasker-Morris (BSL) and 11th Street; Advanceconstruction at Susquehanna-Dauphin (BSL) and continue construction at 5th Street and30th Street (MFL) Phase A and B; City Hall Station inter-station connections and structuralwork

• MFL: Advance capacity expansion projects, including interior seating reconfiguration

• NHSL King of Prussia Rail: Continue evaluating funding strategies to advance 30%Design

Bus Network Initiatives • Vehicles: Complete delivery of 525 Hybrid-Electric Bus order; Initiate procurement of 10

Battery-Electric Buses

• Progress bus network redesign


Corporate Staff


CORPORATE BUSINESS INITIATIVES

Planning, Technology and Employee Support Initiatives: • Continue to partner with the City of Philadelphia on the implementation of its

“Connect” transportation plan

• Continue to implement Energy Action Plan

• Advance Ridership Growth Innovation Team initiatives

• Develop master plans for 69th Street Complex that address customer experienceand capacity issues

• Continue to implement recommendations from the inventory management review

• Complete full deployment of Trapeze Ops software for Transportation Management

• Continue to implement PennDOT performance review action items and report onprogress

• Continue to communicate the value of SEPTA to key stakeholders througheconomic impact analyses

• Advance implementation of Automatic Passenger Counters on Buses, Trolleys andNorristown High Speed Line rail cars

• Advance implementation of new Human Resources Information Systems suite andthe replacement of other key Finance modules

• Implement Diversity and Inclusion Program

• Continue to implement employee facility improvement projects

Safety and Security Initiatives: • Conduct “Make the Safe Choice” and “Never Too Busy For Safety” safety culture

campaigns

• Continue to implement operator refresher safety training program

• Advance Communications-Based Train Control (CBTC) installation on Media-Sharon Hill Line

• Intensify focused campaign on track area falls

• Continue to advance track bumper replacement program

• Complete 3rd party vehicle inspections

• Implement recommendations from 3rd party review of roadway worker protection

program

• Continue efforts to reduce signal violations on rail modes

• Continue installation of Bus Operator Shields, advance installation of TrolleyOperator shields

• Advance construction of ventilation system improvements at Jefferson andSuburban Stations

• Advance Safety and Security improvements at Fern Rock Complex



SEPTA

Transit Police


Transit Police


Overview

SEPTA’s Transit Police are tasked with preventing and investigating crime; establishing an atmosphere of safety and security throughout each of our transit modes; and serving as public safety ambassadors for the transit system.

Headcount

OPERATING HEADCOUNT

Mgmt. Police Total

Administration 10 9 19

Patrol Bureau 22 127 149

Office of Professional

Responsibility

9 28 37

Special Operations Bureau 22 46 68

Total Headcount 63 210 273

Chief of Police

Patrol Bureau

Office of Professional

Responsibility

Special Operations Bureau

Administration


Transit Police



Net Labor


Administration $ 1,629 $ - $ 1,629

Patrol Bureau 11,565 1,387 12,952

Office of Professional Responsibility

3,055 - 3,055

Special Operations Bureau 5,511 - 5,511

Total $ 21,760 $ 1,387 $ 23,147

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $19,934 $19,779 $19,926 $20,224 $19,280 $21,760

Headcount 273 273 273 273 273 273

230235240245250255260265270275280285

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Transit Police

Labor Expense & Headcount Trend

$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 Budget

M&S $901 $755 $891 $859 $1,037 $1,387

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Transit Police

Material & Services Trend

$ In Thousands


Transit Police



Patrol Bureau Ensure a safe work and travel environment and enhance the quality of life through law enforcement and protection against crime. Manage the three Transit Police Districts and overnight shifts responsible for patrol (primarily in uniform) of the Broad Street Subway Line, Market-Frankford Line, trolley lines, Regional Rail, and all SEPTA stations and properties.

Office of Professional Responsibility Ensure the delivery of professional police services, quality control and the continuing education of the department's members. Responsible for the investigation of Transit Police misconduct; management of the body camera program; training of members; recruitment; background investigations and records management.

Special Operations Bureau Responsible for counterterrorism prevention, specialized emergency response/rescue, criminal investigations and radio communications. Manages SORT, VIPR, K9 operations, and respond to incidents requiring special weapons or equipment. Manages criminal investigation section, undercover operations, and communications.



SEPTA

System Safety


System Safety


Overview SEPTA’s System Safety Division consists of a team of experienced safety professionals who are dedicated to ensuring and enhancing the safety of SEPTA’s employees and customers. This Division serves as the corporate safety consultants for all employees to ensure regulatory compliance with a variety of safety and environmental regulations.

Headcount

OPERATING HEADCOUNT


System Safety 24 - 24

Construction Safety - - -

Total Operating Headcount 24 - 24

CAPITAL HEADCOUNT


System Safety - - -

Construction Safety 3 - 3


TOTAL HEADCOUNT


System Safety 24 - 24

Construction Safety 3 - 3


Assistant General Manager

System Safety

System Safety Construction Safety


System Safety


Budget

Amounts in Thousands (‘000)

Net Labor


System Safety $ 2,035 $ 986 $ 3,021

Total $ 2,035 $ 986 $ 3,021

Note: The increase in FY 17 and FY 18 M&S Expenditures reflects third party services for safety training, testing, and consulting.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $1,615 $1,728 $1,708 $1,981 $1,875 $2,035

Headcount 25 27 27 27 27 27

0

5

10

15

20

25

30

35

40

$0

$500

$1,000

$1,500

$2,000

$2,500

System Safety


$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $501 $737 $1,187 $1,004 $1,181 $986

$0

$500

$1,000

$1,500

$2,000

System Safety


$ In Thousands


System Safety



SYSTEM SAFETY System Safety performs a wide range of tasks that are designed to ensure and enhance the safety of our employees, customers, and the community. These tasks include the following:

• Develop, implement, and maintain a Safety Management System as detailed in the

Authority’s Safety Plans.

• Coordinate all functions related to safety throughout the Authority, including the

potential for environmental and workplace health exposures.

• Routinely perform an enhanced level of safety inspections and audits. In addition to

major accident investigations, also conduct occupational injury investigations and

safety/risk management assessments.

• Conduct fire drills and evacuation exercises at all Authority locations.

• Direct the activities of the Joint Health and Safety Committee (JHSC) and oversee the

Location Safety Committee (LSC) process.

• Assist in the coordination of multi-departmental initiatives to promote and internalize

safety as the Authority’s top priority.

• Provide consultation and support in the areas of environmental compliance and

management of SEPTA’s environmental activities.

• Oversee Environmental Site Characterization Assessments, Phase I and II Property

Acquisition Assessments, and Remediation Projects.

• Oversee the Authority’s ISO 14001 Environmental and Sustainability Management

System (ESMS).

• Manage the Property Conservation Program and the risk treatment process. Work to

reduce risk exposure and implement effective risk control techniques at all Authority

locations.

• Coordinate the collection and reporting of all safety statistics throughout the Authority

and administer the reporting of those statistics to regulatory agencies.

• Conduct safety design reviews of SEPTA’s capital construction projects.

• Conduct Safety Inspections and Audits of major Construction projects performed by

both 3rd party contractors and SEPTA in-house forces.

• Serves as the Authority’s Safety Liaison to various regulatory agencies; NTSB, FRA,

FTA, EPA, PaDEP and PennDOT.


System Safety



GOALS BUSINESS INITIATIVES

I. Improve Employee Safetyand Promote a Safe WorkEnvironment

a) Continue to lead employee-focused safety initiativesand safety awareness campaigns.

b) Implement FRA-compliant System Safety Plan.c) Implement FTA-compliant Authority Safety Plan.d) Reduce employee Injuries by 5%.e) Reduce vehicle crashes by 10%.f) Reduce signal violations on rail modes by 10%.

II. Increase Customer SafetyAwareness

a) Continue to lead customer-focused safety campaigns(“Make the Safe Choice”, “Watch Their Step”,“Respect the Train”).

b) Explore technology based solutions to reduce vehicleaccidents.

c) Reduce customer related incidents (e.g. falls into thetracks, fatalities, knockdowns, grade crossingincidents.

d) Roll out New Customer Safety AwarenessCampaigns.

III. Ensure ResponsibleEnvironmentalManagement Through theAuthority’s Environmentaland SustainabilityManagement SystemProgram

a) Maintain ISO 14001 certification at Berridge Shop.b) Maintain ISO 14001 certification at Wayne Junction

Shop.c) Reduce vehicle engine idling at shops, facilities,

loops, and terminals.d) Reduce oil, fuel and coolant spills from vehicles.e) Reduce SEPTA’s carbon emission foot print.f) Increase use of renewable energy sources.

IV. Develop a Safety-FirstCulture

a) Continue the transition to Safety Management System(SMS)-compliant safety programs as required by FTA.

b) Utilize a data-driven approach to safety decisionmaking.

c) Continue to develop innovative ways to enhance theAuthority’s overall safety culture.

d) Continue to enhance the number of Safety Trainingcourses available to SEPTA employees.

e) Continue to promote a grass roots approach to hazardidentification and mitigation through SafetyCommittees, Training, and Supervisor involvement.


System Safety


Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Improve EmployeeSafety and Promote aSafe WorkEnvironment

• Implemented 55 different Safety Training Courses to assist

over 8,000 employees in safety development.

• Reduced workplace loss time injuries to a 10 year low.

• Reduced falls from platforms by 7%.

• Reduced bus knockdowns by 26%.

• Reduced fatalities on the tracks by 5%.

• Reduced grade crossing collisions by 46%.

II. Increase CustomerSafety Awareness

• Customer Safety Day campaign held in FY 2020.

• Safe Turn Alert system now installed in over 1,000 of SEPTA’sbus fleet.

• Partnered with Philadelphia’s Vision Zero Campaign.

• Conducted 11 Station Safety blitzes that reached over 39,000customers.

• Conducted 40 Operation Lifesaver presentations that reachedover 5,700 customers.

• SEPTA’s Safety Bus was at 10 separate public events reachingover 3,200 customers.

III. Ensure ResponsibleEnvironmentalManagement Througha ComprehensiveESMS Program

• Berridge Shop ISO 14001 certification sustained and correctiveaction items being addressed.

• Wayne Shop ISO 14001 certification sustained and correctiveaction items being addressed.

• Safety Data Sheet (SDS) Electronic Tracking system (3E) isbeing utilized Authority wide.

• Fume leak incidents inside revenue buses reduced by 27%from the previous year.

• Anti-Idling Campaign for vehicle engines showing favorablereduction in fuel consumption and costs.

IV. Develop a Safety FirstCulture

• SEPTA’s new Authority Safety Plan for Rail Transit, Bus andCCT being developed. Plans are complete and GeneralManager and Board Concurrence will be obtained by Fall 2020.

• Data analysis has been enhanced with regular meetings withGeneral Manager/Deputy General Manager as well as MonthlyManagement Reports generated. This process will fulfill thedata acquisition component of FTA’s future SMS regulationunder 49 CFR 673/674.

• Held two annual employee safety days. Educated employeeson how to report hazards and discussed the successes of thelocation safety committees.

• Held over 20 town hall meetings with all maintenance-of-wayemployees to discuss roadway worker safety practices anddiscussed any safety concerns that may exist.



SEPTA

Operations


Operations


Overview The Operations Division includes the following departments: Vehicle Equipment Mainenance, Control Center – Transit, Customized Community Transportation (CCT), Rail Transportation, Surface Transportation, and Administration and Finance. The Division provides long term goals related to these areas of responsibility.

The Operations Division provided 223.5 million annual passenger trips in Fiscal Year 2020, while operating 89.8 million vehicle miles. Total passenger miles exceeded 980 million. The Division operates 2,873 revenue vehicles on 151 fixed routes, which have approximately 1,570 route miles and over 600 miles of track. The Operations Division also operates and provides service to 279 stations.

Assistant

General Manager/

Chief Operations

Officer

Administration

and Finance

Vehicle Equipment Maintenance

Customized Community Transportation

Rail Transportation -

Subway - Elevated

Rail Transportation -

Regional Rail

Surface Transportation

Control Center - Transit


Operations


Headcount

OPERATING HEADCOUNT


Administration and Analysis 4 - - - - 4

AGM Staff 8 - - - - 8

Customized Community Transportation 92 - - 24 - 116

Control Center - Transit 50 - - 4 - 54

Rail Transportation – Subway-Elevated 97 3 182 175 320 777

Rail Transportation – Regional Rail 110 53 5 705 - 873

Surface Transportation 191 24 - 2,794 - 3,009

Vehicle Equipment Maintenance 170 33 1,538 - - 1,741

Total Operating Headcount 722 113 1,725 3,702 320 6,582

CAPITAL HEADCOUNT


Administration and Analysis - - - - - -

AGM Staff - - - - - -

Customized Community Transportation - - - - - -

Control Center - Transit 1 - - - - 1

Rail Transportation – Subway-Elevated 1 - - - - 1

Rail Transportation – Regional Rail 1 - - - - 1

Surface Transportation - - - 15 - 15

Vehicle Equipment Maintenance 26 1 227 - - 254

Total Capital Headcount 29 1 227 15 - 272

TOTAL HEADCOUNT


Administration and Analysis 4 - - - - 4

AGM Staff 8 - - - - 8

Customized Community Transportation 92 - - 24 - 116

Control Center - Transit 51 - - 4 - 55

Rail Transportation – Subway-Elevated 98 3 182 175 320 778

Rail Transportation – Regional Rail 111 53 5 705 - 874

Surface Transportation 191 24 - 2,809 - 3,024

Vehicle Equipment Maintenance 196 34 1,765 - - 1,995

Total Headcount 751 114 1,952 3,717 320 6,854


Operations


Budget


Note: FY 2019 increase was due to additional labor to support ADA/senior citizen eligibility screening utilizing part-time employees. FY 2020 decrease was due to a hiring freeze and other cost savings initiatives implemented in March 2020 resulting from the impact of the Covid-19 pandemic.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $7,598 $7,794 $7,842 $8,727 $8,581 $10,058

Headcount 114 114 114 114 114 116

20

40

60

80

100

120

140

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000



$ In Thousands

Net Labor


Administration and Analysis $ 336 $ 271 $ 607

AGM Staff 1,234 10 1,244


Control Center - Transit 5,070 175 5,245

Rail Transportation – Subway-Elevated 56,116 1,211 57,327

Rail Transportation – Regional Rail 83,694 7,581 91,275



Total $ 512,653 $ 66,708 $ 579,361


Operations


Note: Customized Community Transportation budget includes $58.5 million in ADA and Shared Ride contract services. FY 2020 costs were lower due to the Covid-19 pandemic’s impact on ridership.

Note: NPT Integration was transferred to New Payment Technologies in 2018 to report under the Deputy General Manager/Treas. FY 2020 costs were lower due to service reduction implemented during the pandemic.

Note: Decrease in FY 2018 reflects New Payment Technologies transfer from Rail Transportation to the Deputy General Manager. FY 2020 and FY 2021 increase reflects higher 3rd party contract maintenance service costs.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $50,806 $57,106 $53,387 $60,418 $48,887 $65,277

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000



$ In Thousands Includes Contract Services

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $125,269 $119,645 $125,196 $127,658 $126,370 $139,810

Headcount 1,654 1,667 1,494 1,497 1,556 1,652

- 200 400 600 800 1,000 1,200 1,400 1,600 1,800

$0$20,000$40,000$60,000$80,000

$100,000$120,000$140,000$160,000

Rail Transportation


$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $19,174 $21,947 $6,949 $7,719 $8,170 $8,792

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Rail Transportation


$ In Thousands


Operations


Note: Increase in FY 2019 headcount reflects Project and Control Center Coordination transfer of positions to Surface Transportation. FY 2020 headcount decrease reflects transfers to new Control Center – Transit Department partially offset by added bus operators to support the new Route 49 service. FY 2021 includes the addition of bus operator trainees.

Note: FY 2020 costs were lower due to cost saving initiatives implemented in mid- March when Covid-19 hit the region.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $203,716 $204,023 $213,280 $214,091 $208,394 $231,479

Headcount 2,967 2,977 2,977 3,026 3,000 3,024

2,000

2,200

2,400

2,600

2,800

3,000

3,200

$50,000

$100,000

$150,000

$200,000

$250,000



$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $416 $486 $491 $703 $703 $974

$0

$200

$400

$600

$800

$1,000

$1,200



$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $110,089 $112,569 $114,986 $118,138 $117,186 $124,666

Headcount 1,980 1,973 1,973 1,977 1,978 1,995

-

500

1,000

1,500

2,000

2,500

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000


Labor Expense & Heacount Trend

$ In Thousands


Operations


Note: FY 2020 costs were lower due to cost saving initiatives implemented in mid- March when Covid-19 hit the region.


ADMINISTRATION AND FINANCE Coordinate and manage the administrative and financial activities for the Operations Division.

Cost Control Coordinate the development, submission, and monitoring of Operating and Capital Budgets for the Operations Division.

Performance Statistics Control Develop and monitor performance statistic goals for the Operations Division, which support SEPTA’s mission and strategic goals.

Human Resource Administration Manage the process of hiring personnel for the Operations Division in accordance with service requirements. Ensure compliance with SEPTA’s Human Resources policies.

Customer Service Process and expedite all customer correspondence routed through the Operations Division.

Record Retention Coordinate compliance with record retention policies.

Special Projects Coordinate all logistics and activities related to service interruptions, major sporting events and various other annual events, including the Philadelphia Flower Show and Philly Spring Clean-Up.

FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 Budget

M&S $46,445 $50,118 $47,127 $46,302 $44,587 $49,709

$40,000

$42,000

$44,000

$46,000

$48,000

$50,000

$52,000



$ In Thousands


Operations


CUSTOMIZED COMMUNITY TRANSPORTATION (CCT) Customized Community Transportation (CCT) is responsible for the operation of SEPTA’s two demand response services, ADA Paratransit and Shared Ride Program transportation. This full service operation, from advance reservations and customer service to shared trip completion, operates under the name “CCT Connect”. It coordinates development of Requests for Proposals to contract for private operation of new services and provides for the efficient administration of existing contract carrier operations.

CCT coordinates SEPTA’s compliance with the Americans with Disabilities Act (ADA) as it pertains to service, equipment and facilities, advising other operating departments on implementing accessible fixed-route service and facility improvements. CCT also serves as liaison between SEPTA Divisions and the SEPTA Advisory Committee for Accessible Transportation (SAC).

CCT also administers eligibility screening for the following programs: PA Disability Transit ID,

Senior Citizen Transit ID and Personal Care Attendants on Transit ID. In addition, CCT

provides travel training by certified professionals to instruct people how to travel independently

on public transportation. This service is offered one-to-one or as part of designed instruction

for a group in partnership with several local universities and Philadelphia high schools. CCT

oversees the Authority’s customized small bus operations and public-private partnerships via

its Contract Operations Department.

CCT CONNECT

ADA Services Provide advance-reservation, ride-sharing paratransit service for eligible disabled riders in Bucks, Chester, Delaware, Montgomery, and Philadelphia counties.

Shared Ride Program (SRP) Provide advance-reservation, ride-sharing transportation for Philadelphia County riders age 65 and older, regardless of income or disability status.

CONTRACT OPERATIONS

Breeze Operates SEPTA's small bus service known as the Horsham "Breeze". This service provides transportation designed to meet the needs of employers in the Willow Grove and Horsham business centers. The Breeze operates weekday and Saturday service.


Operations


LUCY Operates a fixed route bus loop in the University City area of West Philadelphia. The service is funded by subsidies from the University City District and operates weekday service only.

Cornwells Heights Shuttle Operates a small bus shuttle within the 1,600-space park-and-ride lot at Cornwells Heights train station. Cornwells Heights operates weekday service only.

Contracted Services Provides management oversight and compliance of contracts between SEPTA and third party providers of fixed route services. Currently, it oversees the Route 204 service (Eagleview-Paoli Station) which operates seven days a week.

CONTROL CENTER - TRANSIT The Control Center – Transit is a centralized facility that manages the safe and efficient movement of subway/elevated, light rail trolley, and bus operations and provides customer service alerts to our passengers. All Control Center – Transit functions and associated equipment are located at SEPTA’s 1234 Market Street headquarters on the 19th floor. The Control Center –Transit personnel are responsible for ensuring that SEPTA’s established service levels are maintained 24 hours a day, 7 days a week.

RAIL TRANSPORTATION - REGIONAL RAIL Oversee all transportation, Regional Rail control center operation, customer service, station operation and service planning for the railroad system. The Regional Rail system includes 280 route miles and 13 lines or branches. Approximately 780 trains service a total of 155 stations per average weekday.

RAIL TRANSPORTATION - SUBWAY-ELEVATED Provides train service, customer service, and station cleaning services to the Market-Frankford and Broad Street Lines.

Subway-Elevated Services The MFL operates 380 revenue trains each weekday between the Frankford Transportation Center and the 69th Street Terminal. The BSL operates 598 revenue trains each weekday between the Fern Rock Transportation Center and NRG Station as well as along the Ridge Avenue Spur. The stations group oversees the Customer Attendants who assist customers with fare instrument purchases and navigation of the Subway-Elevated system.

Subway-Elevated Custodial Services The Subway-Elevated stations group oversees the cleaning of 28 Market-Frankford Subway-Elevated stations, 25 Broad Street Subway stations, and 8 trolley stations.


Operations


SURFACE TRANSPORTATION Operates surface transit modes throughout the five county service area with service originating from nine operating locations in the region. Each operating district has full responsibility for transportation service of the transit fleet in that location.

The nine operating districts operate a total of 120 bus, 3 trolley bus routes, 8 trolley (light rail) routes, and 1 interurban high speed (heavy rail) line. It should be noted that the number of bus routes identified by operating district in this section differs from the total number reported elsewhere, due to 12 bus routes that are operated out of more than one district as operating conditions necessitate. The 9 operating districts in Surface Transportation are:

1. Allegheny - operates 9 bus routes2. Callowhill - operates 12 bus routes, in addition to trolley (light rail) Routes 10 and 153. Comly - operates 16 bus routes4. Elmwood - operates trolley (light rail) Routes 11, 13, 34, and 365. Frankford - operates 13 bus routes and 3 trolleybus routes6. Midvale - operates 23 bus routes7. Southern - operates 17 bus routes8. Frontier - operates 22 bus routes9. Victory – operates 20 bus routes, 2 trolley (light rail) Routes 101 and 102, and 1

heavy rail Route 100

VEHICLE MAINTENANCE

BUS MAINTENANCE Performs all maintenance aspects for bus, trolley bus, and non-revenue generating fleets as

well as bus and utility vehicle preventive maintenance overhauls at ten maintenance facilities

and backshops.

RAIL MAINTENANCE

Rail Transit Maintenance

Performs all maintenance aspects for trolley, Norristown High Speed Line, and Subway-

Elevated fleets as well as all rail vehicle preventive maintenance overhauls at eleven

maintenance facilities and backshops.

Regional Rail Maintenance

Performs all maintenance aspects for the Regional Rail fleet as well as all Regional Rail

vehicle preventive maintenance overhauls at five maintenance facilities.


Operations



Fiscal Year 2021 BUSINESS INITIATIVES

I. CustomerExperience

a) Support the City of Philadelphia’s Transit Plan including fullparticipation in the various CONNECTS committees and sub-committees.

b) Use a multi-faceted approach to improving customercommunications during delays, service interruptions, and detoursincluding:

• Improved service alerts from the Control Center InformationManagers (CCIM) that are clear and concise. The alerts shouldbe made often and include projections on when service willreturn to normal so that customers can make informeddecisions.

• Improve on-board communications between operators/crewsand customers. Vehicle personnel should be giving verbalinformation to customers often and in the same manner as isbeing given by the Control Center.

• Improve Rail Station and Bus Stop communication tocustomers. This includes information delivered by the CCIM’sas well as information delivered via signs posted, personnelassigned to the area and audible announcements.

• Ensure that CCIMs and Railroad Announcers are properlymixing automated announcements with live announcementsduring service delays and interruptions.

• Achieve 100% compliance for “Route Detoured” display on busdestination signs for detoured routes.

• Improve detour announcements by Surface Operators to 90%.

• Develop a comprehensive template for informational wayfindingfor each project or abnormal service incident.

c) Improve wayfinding throughout the systemd) Implement the Traveler Information System for CCT customers.e) Improve cleaning efforts throughout the system.

• Support SEPTA’s Cleaning Task Force in evaluating newproducts, new processes, and innovative technologies toimprove cleaning of vehicles and stations.

• Support SEPTA’s Clean Air Task Force in evaluating newmethods of air filtration in SEPTA’s vehicles and facilities.

• Develop and promote new standards of excellence forcleanliness on vehicles and in stations. Expand programs toaddress night and weekend service levels.

f) Create and implement an operator/conductor sensitivity programfor working with customers with disabilities.

g) Monitor MDBF performance of all vehicle modes and aggressivelyaddress adverse trends as they arise. Look for opportunities toimprove performance, including the review of best practices fromother transit agencies.

h) Continue to advance Action Plan to aggressively address areas ofimprovement identified by the 2018 Customer Satisfaction Survey.


Operations


Fiscal Year 2021 Goals and Business Initiatives (continued)

Fiscal Year 2021 BUSINESS INITIATIVES

I. EmployeeDevelopment

a) Utilize the Employee Development Plans created in 2019 todevelop succession plans and improve the manager’s overallperformance through training opportunities and creativeprofessional development methods.

b) Support the Women-In-Trades initiative.c) Develop improved training for new managers.d) Develop a phased three year plan for increasing mechanic

staffing, taking into consideration the newly acquired locomotives,the arrival of the multi-level railcar fleet, and the increase in busfleet size.

II. Rebuilding theSystem

a) Continue to evaluate ridership and customer travel patterns todevelop improved service plans and rebuild ridership in the post-pandemic era.

b) Continue efforts to improve Surface Bus reliability and increaseridership through participation in the Comprehensive BusNetwork Redesign.

c) Continue to support expanded capital construction activitiesacross the Authority by providing vehicles for bus substitutionefforts.

d) Continue to implement Market-Frankford Line capacityenhancement initiatives, such as interior seating reconfigurationand conceptual study for 8-car platforms

e) Support efforts to rebuild the trolley network through participationin the Trolley Modernization project.

f) Support the King of Prussia Rail extension project.

III. SEPTA is aBusiness

a) Implement Phase 3 of Trapeze Ops within Surface andSubway/Elevated.

b) Implement Train Plan scheduling software on Regional Rail.c) Support recycling efforts as well as other critical sustainability

initiatives.d) Advance the bus and regional rail vehicle procurements.

IV. Safety as theFoundation

a) Successfully implement the Authority’s Safety ManagementSystem (SMS) in compliance with FTA regulations and the StateSafety Oversight Program.

b) Follow through on the Operational Safety Improvement Program(OSIP).

• Identify and mitigate hazards associated with the entireoperation.

c) Continue Installation of permanent operator security shields onthe Surface fleet.

d) Continue Market-Frankford Line bolster repair to achieve goal of40 completed cars per year.

e) Continue Implementation of audible bus turn warning system onbus fleet.


Operations




I. Customer Experience a) Supported efforts to reduce fare evasion. Utilized multi-facetedapproach including procedural changes, education andenforcement.

b) Ensured that Surface Control Center Managers achieved 90%compliance with the prescribed response time for Request-to-Talk (≤5 minutes), Priority-Request-to-Talk(≤2 minutes), andEmergency Alarms (<1 minute) initiated by Surface Operators.

c) Utilized scorecard to rate events within the City of Philadelphiawhen considering SEPTA Surface Operations detours andservice alterations.

d) Worked with the Office of Innovation and the TempleUniversity Graduate Program in the formulation of ideas forimproved data management of bus performance.

e) Improved the effectiveness and participation in the SEPTAAdvisory Committee for Accessible Transportation (SAC).

f) Improved janitorial cleaning efforts throughout the system.

• Regional Rail – Ensured that cleaning contractors areperforming to established criteria. Regular meetings heldwith contractor management; Joint site visits; andutilization of an established scoring system.

g) Engaged potential CCT Connect participants as well as theparticipants’ caretakers and the general public in their typicalenvironments to familiarize them with SEPTA’s services andencouraged them to use SEPTA fixed-route services.Performed an average of 4 outreach events per month.

h) Continued meeting with advocacy groups for customers withdisabilities to ensure that those customers’ needs are met andto foster understanding of SEPTA services.

i) Discontinued Market Frankford Line A/B Skip Stop Serviceand increased service between 6:00PM and 8:00PM to boostservice levels at stations experiencing ridership growth.

j) Prepared facilities and provided Ambassador support for majorspecial events, including: Philadelphia Flower Show and BroadStreet Run.

k) Supported installation of equipment on vehicles to providereal-time vehicle location.

l) Continued improvement of fleet reliability.

II. Employee Development a) Met regularly with the Recruitment and Training Departmentsto increase the pool of available candidates and to ensure anadequate supply of Operators, Cashiers, MaintenanceCustodians, and Regional Rail conductors and engineers.Vacancies filled as quickly as possible.

b) Visited all Rail Transportation operating locations to promoterecruitment into supervisory and first-level managementpositions for hourly personnel. Monitored and reported thesuccesses or challenges of the program as candidatesprogressed.


Operations



II. EmployeeDevelopment(continued)

c) Implemented new operator coaching and mentoring onSubway/Elevated. The program targeted new operators intheir 60-day probationary period and included multipleride-alongs by various Transportation Managers, AD’s,and Directors as well as periodic visits with the AD’s andDirectors to review progress.

d) Created a professional development plan for SAMOperations employees that included structured classroomtraining in both technical and soft skill development as wellas practical application of learned concepts.

e) Increased rate of participation of bus operators inrefresher program to ensure 100% completion by the endof CY 2020. Continued refresher as a cyclical programoffered to every operator once every three years.

f) Improved employee engagement/satisfaction effortsthrough new campaigns and a greater awareness (24/7) ofthis goal by all managers. Established and promotedemployee recognition programs and support theSEPTAcular peer-to-peer program.

g) Proactively addressed organizational turnover.h) Continued incremental improvement to workforce diversity

among the organization.i) Worked with Employee Development and Relations to

develop and conduct workshops designed to increase andimprove managers’ expertise in contract compliance,discipline assessment, and grievance handling.

III. Rebuilding theSystem

a) Provided strong alternative service during constructionefforts such as the Southwest Connection ImprovementProgram – Phases 1 and 2 and the Trolley Tunnel Blitz.

b) Coordinated the impact of construction with alternatesubstitute transportation to minimize customer complaintsand service disruptions.

IV. SEPTA is a Business a) Implemented Phase 1 and 2 of Trapeze Ops withinSurface and Subway/Elevated.

b) Advanced the evaluation of innovative vehicletechnologies, focusing on energy savings.

c) Continued the conversion of incandescent to LED lights onall vehicle fleets.

d) Continued to advance the following ongoing vehicleprocurements:

• 525 hybrid-electric buses

• 225 paratransit vehicles

• multi-level push-pull railcarse) Achieved key VOH production goalsf) Provided support for Trolley Tunnel Blitz


Operations



V. Safety as the Foundation a) Followed through on the Operational Safety ImprovementProgram (OSIP).

• Identified and mitigated hazards associated with theentire operation.

b) Conducted Positive Train Control testing of foreign railroadengineers on SEPTA territory. Ensured that the system isfully functional and that each engineer is efficient in its use.

c) Executed full-scale and tabletop exercises to:

• Simulated train operations on BSL/MFL during Out-of-Service signal system conditions at Fern Rock

• Trained field and Control Center managers on IncidentCommand System and handling inter-departmentalemergencies.

d) Conducted regular safety meetings and supported the JointHealth and Safety Committee (JHSC) Process.

e) Analyzed movement of vehicles in all districts, shops andgarages, particularly in the garage bays, and maderecommendations to improve vehicle speed compliance.

f) Enhanced the Vehicle Quality Assurance and QualityControl Program with focus on safety critical items.

g) Reduced lost time injuries and accident rates by analyzinginjury data to identify high risk areas.

cal)



SEPTA





The Engineering, Maintenance and Construction (EM&C) Division is responsible for all engineering and maintenance related to the Authority’s civil engineering, stations, buildings, bridges, track, communications, and signal and power systems. The Division is also responsible for capital construction of both transit and railroad facilities and right-of-way elements.

Headcount

OPERATNG HEADCOUNT

Mgmt. Clerical Maint. Total

Maintenance of Way

MoW–Staff and Administration 13 - - 13

Civil Engineering 3 1 - 4

Track 33 6 234 273

Communications and Signals 28 38 139 205

Power 40 11 131 182

Bridges and Buildings (B&B)

B&B Maintenance & Facilities

Engineering

60 9 306 375

Transit Facilities - - - -

Rail Facilities - - - -

Project Development - - - -

Total Operating Headcount 177 65 810 1,052

CAPITAL HEADCOUNT


Maintenance of Way


Civil Engineering 5 - - 5

Track 18 - 127 145


Power 21 1 37 59



Engineering

33 1 108 142

Transit Facilities 13 - - 13

Rail Facilities 13 - - 13

Project Development 10 - - 10

Total Capital Headcount 143 7 314 464




TOTAL HEADCOUNT


Maintenance of Way


Civil Engineering 8 1 - 9

Track 51 6 361 418


Power 61 12 168 241



Engineering

93 10 414 517

Transit Facilities 13 - - 13

Rail Facilities 13 - - 13

Project Development 10 - - 10

Total Headcount 320 72 1,124 1,516




Maintenance of Way (MoW)


Staff and Administration

Bridges and Buildings

Civil Engineering

Track

Communications and Signals

Deputy General Manager Operations, EM&C and

Vehicles

Power

Project Development

Rail Facilities

Transit Facilities

B&B Maintenance and Facilities Engineering




Budget


Net Labor



MoW-Staff and Administration $ 1,085 $ 10,685 $ 11,770

Civil Engineering 291 95 386

Track 19,468 3,332 22,800

Communications and Signals 17,992 2,520 20,512

Power 14,601 1,600 16,201



Engineering

29,180 8,183 37,363

Transit Facilities 223 4 227

Rail Facilities 39 3 42

Project Development 53 - 53

Total $ 82,932 $ 26,422 $ 109,354

Note: Departments with minimal labor dollars are primarily funded through the Capital Budget.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $73,688 $75,067 $79,283 $77,321 $78,413 $82,932

Headcount 1,498 1,527 1,526 1,538 1,515 1,516

0

200

400

600

800

1,000

1,200

1,400

1,600

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Engineering, Maintenance & Construction


$ In Thousands

Note: FY 2020 headcount and dollars reflects the transfer of the Real Estate and Strategic Initiatives departments to the Deputy General Manager Operations, EM&C and Vehicles. Cost reduction initiatives implemented in mid-March 2020 included a temporary hiring freeze and overtime restrictions which lowered labor costs.





MAINTENANCE OF WAY

Staff and Administration

Administration and Finance Coordinate and manage the financial and administrative activities for the Engineering, Maintenance and Construction Division. Primary responsibilities include: the Division’s operating budget; Infrastructure Safety Renewal Program (ISRP) development, analysis and reporting; Human Resource administration; Contract Management.

Planning and Coordination Works with internal and external groups on track outages, special events, weather events and other issues that require an integrated response by the Control Center.

Civil Engineering Provide civil engineering services for all maintenance and renewal projects. Provide coordination and oversight for public agency, utility, and private third party work on, over, or adjacent to SEPTA’s right-of-ways.

Track Perform inspection, maintenance, and reconstruction of track and right-of-way areas. Provide track engineering and design services for all maintenance and renewal projects. Operate Track Shop to support requirements for routine and specialty track design and fabrication. Operate Midvale Utility Group, which oversees the deployment of non-revenue and utility vehicles.

Communications and Signals Perform regular inspection, testing, maintenance, and reconstruction of the signal system. Provide engineering and design services for all signals and communications maintenance and renewal projects. Perform all radio, telecommunications, and railroad communication maintenance. Manage the engineering and construction for capital projects involving communication and signals infrastructure.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $29,156 $28,963 $32,022 $30,443 $26,109 $26,422

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Engineering, Maintenance & Construction


$ In Thousands

Note: FY 2018 included unbudgeted facility maintenance costs that did not continue into FY 2019. FY 2020 and FY 2021 decrease reflects Real Estate and Strategic Initiatives transfer to Deputy General Manager Operations, EM&C and Vehicles.




Power Perform regular inspection, maintenance, and reconstruction of electric traction and signal power systems and electrical infrastructure. Provide engineering and design services for all related maintenance and renewal projects. Manage engineering and construction for capital projects involving power and electrical infrastructure.

BRIDGES AND BUILDINGS

Bridges and Buildings Maintenance and Facilities Engineering Provide structural, architectural, and mechanical engineering services. Perform all major force account construction projects and maintenance of stations, buildings, bridges, maintenance shops and electrical/mechanical infrastructure. Perform regular inspection of all bridges, tunnels, buildings, other structures, and fixed plant infrastructure.

Rail Facilities Capital Construction Manage the engineering and construction of capital projects for fixed plant facilities, including improvements to stations, track, signals, bridges, and parking facilities for Regional Rail operations.

Transit Facilities Capital Construction Manage the engineering and construction of capital projects for fixed plant facilities, including improvements to stations, maintenance facilities, and garages for transit operations.

Project Development Develop conceptual designs, cost estimates, and Request for Proposal documents for design projects. Manage the awarded design projects through to completion of design phase. Provide cost estimating services for Divisional projects. Manage the coordinated advancement of construction on major projects such as the expansion of the Media/Elwyn Regional Rail line to Wawa.





FY 2021 GOALS BUSINESS INITIATIVES

I. Rebuilding the System a) Control capital project spending by keeping costswithin budget.

b) Achieve targets for major capital project milestonesfor all architectural, engineering and constructionprojects.

c) Pursue Project Control initiatives and GeneralEngineering Consultant (GEC) contracts.

d) Commence, advance, and complete all scheduledEM&C Division ISRP projects.

e) Maintain State of Good Repair database to providea capital asset inventory and an analysis of capitalinvestment backlog and investment alternatives.

f) Advance design and construction projects underBuilding the Future Program, including new tractionpower substations, bridge and viaductreplacements/rehabilitations, station improvements,and maintenance facility roof replacements.

II. Sustainability a) Promote cost effective implementation ofsustainability projects by incorporating Leadership inEnergy and Environmental Design (LEED) andEnergy Star design standards while adhering tobudgets.

b) Manage capital investments to reduce long termutility costs by completing energy efficient lightingimprovement projects. Advance Guaranteed EnergySavings Projects (ESCO). Conduct energy audits todetermine additional savings opportunities.

c) Continue to improve material recycling programs atstations and operating locations.

d) Continue the hardening of at risk infrastructure tocombat severe weather events.

III. Safety and Security a) Conduct internal and external Safety Days to focuson employee and rider/public safety issues.

b) Advance system modernization projects includingMedia/Sharon Hill Positive Train Control, RegionalRail and transit substations, 30th Street to Arsenal(Southwest Connection) interlocking catenary,signals and interlocking improvements.



119 | S E P T A F Y 2 0 2 1 O p e r a t i n g B u d g e t P r o p o s a l



III. Safety and Security(continued)

c) Ensure ongoing infrastructure maintenance byensuring strict compliance with all mandatedstandards, agency regulations and internal policiesand procedures for rail and transit safety. Regularinspections and preventive maintenance to beperformed in accordance with all codes, regulationsand Original Equipment Manufacturerrecommendations.

d) Measure and monitor employee Injuries on Duty(IOD) lost time and establish target for futurereductions.

e) Mitigate COVID-19 impact by reinforcing guidelinesrecommended by the CDC.

IV. Expand SystemCapacity

a) Advance projects that support ridership growth.

b) Advance Frazer Shop expansion to accommodatenew locomotives and multi-level coaches, andElwyn to Wawa Regional Rail service restoration.

V. Customer Service a) Support customer service related operating andmaintenance projects including: Regional Rail snowremoval, cleanliness of facilities, loops, and stations,maintenance blitzes at multi-modal transportationcenters, maintenance to elevators and escalators tomeet reliability targets, timely response to Veritasreports/Customer Service issues, and thecoordination of maintenance and constructionactivities to minimize track outages.

b) Support customer service related capital projectssuch as construction at Susquehana-Dauphin andTasker-Morris Stations, Wissahickon TransportationCenter, and Ardmore Station.

VI. New Technologies a) Pursue communications-based technologicalupgrades including wireless delivery of real timeservice information, cell phone access in SEPTAtunnels, Wi-Fi Internet access hotspots, and newasset management software.






VII. Human CapitalDevelopment

a) Minimize employee turnover and improve hiringprocess management.

b) Implement and encourage employee trainingthrough a Rotational Training Program for new entrylevel professional engineers, an elevator/escalatormaintenance apprentice program, and full utilizationof internal management training seminars. Supportthe AIM training and succession planning program.

c) Assist the Division’s professional engineers inobtaining continuing education credits required tomaintain Pennsylvania licensure.

d) Continuously review and update the relevant skillsqualification tests administered by EmployeeDevelopment and Relations.



I. Rebuild the System • Continued the design of Substation Program, Wayne JunctionStatic frequency converter and 30th St. West catenaryreplacement.

• Continued the construction of Regional Rail Substations undercontracts 1 and 2.

• Completed the Woodland Avenue Bridge replacement.

II. Sustainability • Advanced ESCO Projects.

• Completed Combined Heat and Power Project.

III. Safety and Security • Continued the design of grade separated pedestrian access andstation improvements at Lawndale Station.

• Continued the design of Security Improvements at ElmwoodShop.

IV. Expand SystemCapacity

• Advanced construction of Elwyn to Wawa service restorationproject.

• Advanced design for Frazer Shop and Yard Phase 3.

• Advanced Preliminary Design for NHSL King of Prussia LineExtension.

V. Customer Service • Completed ADA station improvements on the Market-FrankfordLine at 15th Street, Arrott Transportation Center, and 30th StreetStation Elevators. Completed station improvements atLevittown, Exton, and Secane on Regional Rail.




Fiscal Year 2020 Accomplishments (continued)


VI. New Technologies • Installed bridge monitoring program on three Media/Elwynviaducts.

• Asset Management Program implemented and InfrastructureMaintenance Management System departmental roll outscontinued.

VII. Human CapitalDevelopment

• Rapid Assimilation Program for new EM&C SAM employees

• Rotational Training Program for new entry level professionalengineers

• Supervising Hourly Employees Program

• Tour de EM&C Program

• AIM training program for Assistant Directors



SEPTA

Deputy General Manager/Treasurer




Overview The Deputy General Manager/Treasurer’s Staff includes divisional assistant general managers and department heads who are responsible for various administrative functions that support the operations of the Authority.

The Deputy General Manager/Treasurer’s Staff includes five departments that are reported upon in this section, namely Deputy General Manager/Treasurer Administration, Communications, Information Technology, New Payment Technologies, and Revenue Operations.

There are five divisions with assistant general managers who report within the Deputy General Manager/Treasurer Administration Department. The divisions they are responsible for include: Audit and Investigative Services, Employee Development/Relations, Finance, Human Resources, and Procurement, Supply Chain and Disadvantaged Business Enterprise. Details concerning these five divisions are summarized separately within this document.

Headcount

OPERATING HEADCOUNT


Administration 9 - - 9

Communications 10 5 3 18

Information Technology 68 5 - 73

New Payment Technologies 1 - - 1


Total Operating Headcount 197 54 51 302

CAPITAL HEADCOUNT



Communications - - - -

Information Technology - - - -


Revenue Operations - - - -

Total Capital Headcount 7 - - 7

TOTAL HEADCOUNT



Communications 10 5 3 18

Information Technology 68 5 - 73



Total Headcount 204 54 51 309





Treasurer

Audit and

Investigative Services *

Communications

Employee Development and

Relations *

Finance*

Human Resources *

Information Technology

New Payment Technologies

Revenue Operations

Procurement, Supply Chain and Disadvantaged Business

Enterprise *

Deputy General

Manager/Treasurer

Administration

The Deputy General Manager/Treasurer has five divisions and five departments that are direct reports. *Indicates divisions which are reported separately in this document.





Net Labor


Administration $ 1,609 $ 20 $ 1,629





Total $ 23,780 $ 38,905 $ 62,685


COMMUNICATIONS Responsibilities include internal and external communications, including the development of customer information, brochures, posters and notices, system signage, wayfinding information, and maps. Manages the content, graphics, navigation, and editorial content for SEPTA’s public website and social media outlets. Develops new customer features and format for public website including real time service information and Smartphone apps. Responsible for the redesign and editorial content of the Authority’s employee Intranet site and new employee electronic newsletter – SEPTALife. Also responsible for preparing testimony, speeches, articles, General Manager communications and other correspondence. Directs the Art in Transit program and manages Graphic Services, Printing Services, the Sign Shop, Fulfillment Services, Communications and Website Management.

Printing Services and Sign Shop Serves as the internal print production operation for all Authority departments. Printing Services is responsible for printing approximately nine million transit schedules each year as well as customer brochures, posters, leaflets, maps, forms, corporate business cards, and stationery. The Sign Shop is responsible for producing facility and vehicle signs, decals, and banners, including system-wide transit stop signage.

Graphic Services Provides creative concept, design, layout, and pre-production services for all departments for a variety of projects including brochures, leaflets, posters, transit passes, maps, signage, marketing, and sales materials. Responsible for graphic design of SEPTA’s Internet and Intranet sites including specialty micro-sites.

Fulfillment Services Provides direct mail service to customers, internal SEPTA departments and constituents requesting bulk distribution of transit schedules, customer service notices, and other brochures and leaflets produced by the Authority. Manages production contract for schedules not produced internally.




Communications and Website Management Responsible for all customer and employee communications initiatives, including all SEPTA service and project related information using a variety of tools such as web, video, and social media. This unit is also responsible for the design, content, and management of the SEPTA website and social media tools.

INFORMATION TECHNOLOGY

Emerging & Specialty Technologies Provides the short and long term strategy, direction, management and implementation of the core enterprise architecture and critical operations systems for the Authority. Manages new technologies and the support of Control Center specialty technology systems, real-time systems and public-facing applications. Responsible for the strategic design and development of advanced web applications to service SEPTA customers.

Application Delivery Services Supports the development, integration, and implementation of new software systems to business units throughout the Authority. Responsible for the management and implementation of the Authority’s Enterprise Resource Planning (ERP) Suite beginning with HRIS and including Finance, Payroll, and Purchasing legacy applications. Maintains and enhances existing systems Authority-wide. This section responds to application software problems.

Cyber Security Manages and supports the effort of protecting customer and employee data from intrusion or data breach. Engages cyber security committee meetings with key stakeholders that focus on business applications, enterprise databases, operational systems, and fare collection to ensure protocols and procedures are in place to minimize the threat of intrusions, malware, and data breaches. Works with outside agencies and professional affiliations, including law enforcement, to aid in understanding new cyber security risks/threats and determining what remedies are available to protect and minimize the impact.

Infrastructure Services Provides computer operations stability and access security on a 7-day/24-hour basis including problem management, disaster recovery, technical infrastructure management/support and change control. Maintains the technology infrastructure necessary for business critical systems, including: enterprise e-mail services, Internet/Intranet access, payroll, materials management, general accounting, operations control centers, disaster recovery and business continuity. Supports enterprise data communication systems and the entire personal computer environment. Sets standards for hardware and software used across the networks and installs, supports and maintains the entire data network infrastructure. Provides oversight and management of the SEPTA Key Back Office Technical Infrastructure.

Records Management Responsible for developing and implementing records management systems throughout the Authority, including record retention schedules, storage, retrieval, digital archiving, and destruction protocols.





FY 2021 GOALS INFORMATION TECHNOLOGY

BUSINESS INITIATIVES

I. The Customer Experience a) Continue to improve the administration ofresponding to customers and Customer Servicevia VERITAS and other reporting mechanismsof customer issues. Continue to work on failureanalysis reports and failure response time toimprove customer satisfaction.

b) Identify and correct all revenue collectionsissues in an expedited manner.

c) Collaboratively "Prepare for Service" duringmajor special events such as:-Flower Show, sports events, etc. and providerevenue support with Sales Operations

d) Finalize SEPTA Key rollout on Regional Rail.

e) Complete CCT Integration with SEPTA Key.

f) Upgrade and open 30th Street Amtrak 29thStreet entrance.

II. Launch HRIS system toproduction mode

a) Complete the interview and documentation ofworkflow processes

b) Test new application in development mode andmake changes to fit organization processes

c) Rollout first phase of HRIS – Employee Centraland Applicant Tracking

III. Real-Time TravelInformation

a) Continue the build out of more efficient real timetracking of vehicles (surface and rail).

b) Complete the work needed to capture real timedata for the MFL and BSS and present the realtime information on the website, signage andmobile app

IV. Continue Upgrade of SEPTAMobile App

a) Add parking feature to the SEPTA Mobile Appfor customer parking purchases

b) Continue to develop the ability for mobileticketing through the SEPTA Mobile App

V. Cyber Security Initiatives a) Continue vulnerability and penetration tests ofexternal network and server resources.

b) Harden the SEPTA technical Infrastructureagainst cyber security attacks and malwareattacks.

c) Continue employee education regardingsecurity procedures and security awareness.





FY 2020 Goals Information Technology Accomplishments

I. Improve SEPTA Mobile App • Completed Identifying issues with buses, worked withC&S and VEM on restoration and resolve of busequipment issues

• Eliminated “ghost buses” and continue move towardsa “single app” by integrating SEPTA Key accountinformation

II. Add SEPTA Key features tothe SEPTA Mobile App

• Completed. Rolled out SEPTA Mobile App withSEPTA Key features in August 2019. Customers canlogin purchase products, autoload, use and add totravel wallet, review trip and order history

III. Complete installation of Wi-Fi at all SEPTA employeelocations

• In Process. Equipment received in summer of 2019.Working with C&S on remote locations for WiFicoverage for diagnostics, vehicle video and employeebusiness access.

IV. Advance Cyber SecurityInnovation Team initiatives

• Ongoing. Continued with internal phishing campaignsand related security training. Completed securityreview on newly acquired ACS-64 locomotives.SEPTA external network resources under securityreview now.

V. Improve redundancy forservers, applications andnetworks on the SEPTATechnical Infrastructure

• Added virtual servers and resilient networking toadvance capabilities in high availability mode. Addedsecond or backup Internet Service through WyomingAvenue data center for redundancy for applicationsthat are hosted outside the data center.

VI. Complete the HRISreplacement purchase andbegin implementation

• Completed. HRIS vendor and solution selected.Currently working with vendor and the HR departmenton onboarding the new system.




NEW PAYMENT TECHNOLOGIES Directs the multi-phase SEPTA Key Project to transform SEPTA’s aging revenue collection system into a modern, efficient, and convenient system for customer payment and agency collection of fare revenue.


FY 2021 GOALS NEW PAYMENT TECHNOLOGIES

BUSINESS INITIATIVES

I. Advance the SEPTA KeyProgram

a) Continue to support the advancement of theKey Program, especially in Regional Rail.

b) Work with Project Team and Operations toinsure customer use of fareline facilities andrevenue equipment is not adversely impactedduring the Key Program equipmentinstallations/testing.

c) Support all construction projects on the systemthat will require adjustments to revenuecollection procedures.

d) Deploy bus loader handheld readers.

e) Complete Regional Rail functionality includingopen lot parking and parking permits.

f) Replace Smart Media Processors with EMV-compliant unit.

g) Obtain PCI Certification.

h) Complete AMTRAK/NJT integration with Key.

i) Conduct pilot for PayGo functionality.

j) Investigate replacement model for Regional Railconductor handheld unit.

k) Conduct pilot for student Key passes.


FY 2020 Goals New Payment Technologies Accomplishments

I. Advance the SEPTA KeyProgram

• SEPTA Key rollout on City and Suburban Transit issubstantially complete.




REVENUE OPERATIONS

Revenue Transportation and Collections Manages the collection, transportation, and deposit of passenger revenues and fare instruments. This includes, Surface operations revenue, Sub-EL operations revenue and Regional Rail open lot SEPTA Key revenue.

Revenue Services Ensures timely processing, counting, and reconciliation of passenger revenue, as well as the distribution of fare instruments.

Revenue Equipment Maintenance Performs preventive/corrective maintenance and overhaul of fare collection equipment and devices on all modes of transportation (Surface, Subway and Regional Rail).

Revenue Engineering Provides engineering and design support for the revenue system including specifications, drawings, equipment modifications, and system upgrades.

Railroad Parking Equipment Maintenance and Servicing Responsible for managing third party contractors for maintenance on legacy parking lot and garage equipment.


FY 2021 GOALS REVENUE OPERATIONS BUSINESS INITIATIVES

I. Evaluate and Update RevenueOperations Procedures

a) With deployment of SEPTA Key, evaluateRevenue Operations procedures to ensureprotection of Authority revenues.

b) Update SEPTA Key Incident Response Plan.

c) Support SEPTA Key ridership and revenuereporting.


FY 2020 Goals Revenue Operations Accomplishments

I. Revenue Equipment • Mean Time between Failure (MTBF) goals have beenachieved on fareboxes and will continue to achieve andexceed MTBF goals for existing kiosks and turnstiles as thisequipment has not been fully accepted by SEPTA.

• Staff schedule adjustments were implemented to betteridentify and correct all revenue collections issues in anexpedited manner.

• All Regional Rail station validators and parking paymentstations are installed.



SEPTA

Deputy General Manager/Operations, EM&C and Vehicles




Overview The Deputy General Manager/Operations, EM&C and Vehicles Staff includes a divisional assistant general manager and various department heads who are responsible for operational and administrative functions that support the operations, equipment, and infrastructure of the Authority.

The Deputy General Manager/Operations, EMC and Vehicles Staff includes four departments that are reported upon in this section, namely Deputy General Manager Direct Reports, Vehicle Engineering, Real Estate, and Strategic Initiatives.

There are two major divisions that report to the Deputy General Manager/Operations, EM&C and Vehicles. The divisions they are responsible for include: EM&C and Operations. Details concerning these two divisions are summarized separately within this document.

Headcount

OPERATING HEADCOUNT


DGM Direct Reports 5 - - 5

Vehicle Engineering 30 2 - 32

Real Estate 11 4 - 15

Strategic Initiatives 7 - 5 12


CAPITAL HEADCOUNT




Real Estate - - - -

Strategic Initiatives 14 - - 14

Total Capital Headcount 49 2 - 51

TOTAL HEADCOUNT




Real Estate 11 4 - 15

Strategic Initiatives 21 - 5 26






Operations, EM&C and

Vehicles

Operations*

Vehicle Engineering

Real Estate


EM&C*

Maintenance of Way

Bridges and Buildings

DGM Direct Reports

The Deputy General Manager/Operations, EM&C and Vehicles has two divisions and four departments that are direct reports. *Indicates divisions which are reported separately in this document.





Net Labor


DGM Direct Reports $ 786 $ 48 $ 834

Vehicle Engineering 3,237 2,882 6,119

Real Estate 1,064 4,091 5,155

Strategic Initiatives 829 36 865

Total $ 5,916 $ 7,057 $ 12,973


VEHICLE ENGINEERING

BUS VEHICLE ENGINEERING Oversees the engineering for bus, trolleybus, and non-revenue generating vehicle fleets. Responsible for the acquisition of new fleets of vehicles including bus, CCT, and utility vehicles.

Engineering Provides all engineering support including specifications, drawings, vehicle modifications, and system upgrades for all bus fleets. Investigates and resolves bus and fleet technical issues. Support is provided to heavy maintenance facilities and CCT vehicle maintenance.

New Vehicles Oversees the purchase of all new bus, trolleybus, CCT, and utility vehicles. Manages the procurement, production, inspection, acceptance, and contract deliverables (e.g. spare parts, manuals, and warranty administration) for various automotive vehicle contracts.

RAIL VEHICLE ENGINEERING Oversees the engineering for light rail, subway-elevated, and Regional Rail fleets and is responsible for all new rail vehicle acquisitions.

Engineering Provides all engineering support including specifications, drawings, vehicle modifications, and system upgrades for all rail fleets. Investigates and resolves rail fleet technical issues. Support is provided to heavy maintenance facilities.

New Vehicles Oversees the purchase of all new rail vehicles. Manages the procurement, production, inspection, acceptance, and contract deliverables (e.g. spare parts, manuals, and warranty administration) for various rail vehicle contracts.




REAL ESTATE

Property Development and Acquisition This unit within the Real Estate Department manages real property transactions dealings on behalf of the Authority, including carrying-out activities pertaining to the acquisition, development, leasing, and sale of SEPTA-owned properties. Department staff also works with external parties in the joint development of SEPTA owned or controlled properties, perform needs assessment, market research and valuation to secure large warehouse agreements, undertaking of public improvements, management of existing revenue agreements and the establishment of new revenue generating utility occupancy arrangements, and the transaction of land, property rights and facility acquisitions that provide for and support infrastructure and ridership enhancements.

Headquarters’ Support Services Management/Administration This unit oversees office space planning, design and implementation, and day-to-day facilities management (performed by third party contractors) for SEPTA Headquarters’ at 1234 Market Street. Unit Staff acts as liaison with contracted building operations management and SEPTA in-house labor. Coordinating the utilization of pool vehicles and the administration of all contracted vendateria services are also conducted by the Staff of this unit.

Mail and Document Reproduction Services This unit manages the operation of the mail room and the performance of mail services in compliance with the applicable labor contract and U.S. Postal requirements. Staff also oversee and manage centralized document reproduction services.

STRATEGIC INITIATIVES Oversees key multi-divisional initiatives and departmental functions, including: SEPTA’s Asset Management program; Project Control; Support Services; Interagency Coordination focusing on the Northeast Corridor Commission; and implementation of new multi-divisional initiatives.

Asset Management Asset Management is responsible for the implementation of the Asset Management Program in accordance with FTA requirements. The department provides stewardship of SEPTA’s Asset Management Plan and decision support tools. This group is also responsible for the analysis and reporting of condition and performance data for fleet and infrastructure, development of asset management strategies and long range plans, and facilitating the implementation of software systems to support these efforts.

Project Control Project Control provides budgeting, cost control, scheduling, claims management, and capital program systems support to project management staff. Responsible for the centralized monitoring and reporting of SEPTA's Capital Spending Program, including the publication of the monthly Capital Performance Report and the annual Capital Spending Forecast.

Support Services Support Services manages and supports external and internal customer service efforts ensuring that all EM&C departments are responsive, aware of, and sensitive to issues affecting customers, neighbors, and stakeholders. Responsible for serving as a liaison with all external and internal customers outside EM&C. Support Services also provides ongoing maintenance of employee locations that have received Facilities Improvement Team (FIT) remodels, ensuring that this substantial investment in workplace quality and morale is continually improved throughout the Authority.






I. Vehicle Engineering • Support planning and preliminary engineering

efforts for the trolley modernization program and

the procurement of electric work cars

• Continue to implement Market-Frankford Linecapacity enhancement initiatives, such as interiorseating

• Advance the following ongoing vehicleprocurements:

- Complete delivery of 525 hybrid bus orderwith New Flyer

- 10 additional battery-electric buses45 multi-level push-pull rail cars forRegional Rail

- Complete delivery of 225 CCT Paratransitvehicles

• Expedite Frazer Shop Improvement Program toprepare for new multi-level railcar fleet

II. Real Estate • Continue the acquisition, development, leasing,and sale of SEPTA-owned properties

• Evaluate opportunities for Transit OrientedDevelopment and other public-privatepartnerships

III. Strategic Initiatives • Monitor and report on capital budgets andschedules to proactively address any potentialissues

• Maintain State of Good Repair database toprovide a capital asset inventory and an analysisof capital investment backlog and investmentinitiatives

• Support customer service in responding tooperations and infrastructure inquiries

• Enhance existing SEPTA software support toolsfor capital project management






I. Vehicle Engineering • Supported the modernization of the CBTC (Communications-Based Train Control) system on the MSHL

• Developed the Fleet Management Plan and monitored itseffectiveness towards maximizing the utilization of all fleets

• Managed warranty compliance in specifications for SEPTA’snew bus procurement contracts with OEMs and suppliers.

• Advanced the evaluation of innovative vehicle technologies,focusing on energy savings

• Continued the conversion of incandescent to LED lights onall vehicle fleets

• Researched vehicle material upgrades to increase fleetdurability and reliability

II. Real Estate • Stone Arch Bridge Culverts Project- Acquired 11 temporaryconstruction easements

• Advanced ESCO Projects

• Advanced review of existing pipe and wire term agreementsto determine additional revenue opportunities

• 30th Street Headhouse Project and Ardmore StationEasement Acquisitions

• 69th Street Garage Project Property Acquisition from PADOT

• ELWYN-WAWA Restoration Project – Acquired 7 permanentslope easements

• Established new Emergency Safety procedures at 1234Market Street Headquarters

• Established COVID-19 safety procedures in accordance withCDC guidelines at 1234 Market Street

III. Strategic Initiatives • Completed monthly project budget and schedule reports

• Maintained the State of Good Repair database and initiatedasset condition updated

• Supported customer service in responding to operations andinfrastructure inquiries



SEPTA

Finance


Finance


Overview The Finance Division develops and then monitors results for the Authority’s Operating and Capital Budgets, and federal, state, and local grants. The Division oversees all financial services, including the preparation of monthly and annual financial statements for outside stakeholders as well as the management of advertising contracts.

Headcount

OPERATING HEADCOUNT


Administration 6 - 6

Capital Budget and Grant Development 7 - 7

Financial Services 23 8 31

General Accounting 9 2 11

Operating Budget 9 - 9

Payroll 4 2 6

Revenue, Ridership, Advertising and Sales 26 26 52

Total Operating Headcount 84 38 122

CAPITAL HEADCOUNT


Administration - - -


Financial Services - - -

General Accounting - - -

Operating Budget - - -

Payroll - - -

Revenue, Ridership, Advertising and Sales 1 - 1


TOTAL HEADCOUNT




Financial Services 23 8 31

General Accounting 9 2 11

Operating Budget 9 - 9

Payroll 4 2 6

Revenue, Ridership, Advertising and Sales 27 26 53



Finance


Chief Financial OfficerFinance

Administration

Capital Budget and

Grant Development

Financial Services

General Accounting

Operating Budget

Payroll

Revenue, Ridership,

Advertising and Sales


Finance



Net Labor


Administration $ 844 $ 10 $ 854

Capital Budget and Grant Development 534 3 537

Financial Services 2,231 666 2,897

General Accounting 809 317 1,126

Operating Budget 746 27 773

Payroll 413 2 415

Revenue, Ridership, Advertising and Sales 3,491 6,493 9,984

Total $ 9,068 $ 7,518 $ 16,586

Note: Service Planning, and Strategic Planning and Analysis departments were transferred to the new

Planning and Strategic Initiatives Division resulting in a reduction of 50 positions in Finance.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $11,145 $10,580 $10,450 $10,890 $8,188 $9,068

Headcount 184 176 176 176 128 124

0

30

60

90

120

150

180

210

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Finance


$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $2,296 $2,523 $4,245 $5,484 $4,696 $7,518

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Finance


$ In Thousands

Note: Expense increase subsequent to FY 2017 is primarily due to bank transaction fees which continue to rise with the increased rollout of the SEPTA Key Card. FY 2020 bank transaction fees were low due to a significant ridership decline beginning in March 2020 when the Covid-19 pandemic hit the region.


Finance



CAPITAL BUDGET and GRANT DEVELOPMENT Develop the annual Capital Budget and the twelve-year Capital Program. Prepare, maintain, execute, and monitor federal, state, and local grants from inception to grant close-out. Develop and maintain the transit capital projects of the regional Transportation Improvement Program (TIP). Provide oversight and prepare analyses of the Vehicle Overhaul Program (VOH), Infrastructure Safety Renewal Program (ISRP), and Transit Security Grant Programs. Also responsible for other special grant programs.

FINANCE ADMINISTRATION Coordinate, manage, and direct the activities of the Finance Division. Oversee the development and implementation of the operating and capital budgets. Manage financial reporting and develop revenue strategies and fare policies. Ensure that resources are used effectively to maximize capital investments and to maintain access to the capital markets on reasonable terms and conditions.

FINANCIAL SERVICES

Accounts Payable, Accounts Receivable, Billings and Cash Management Process vendor payments, ensure items processed are correctly recorded, generate all billing invoices, ensure that all receipts due are received and properly applied, and capture and report capital project costs. Provide accurate reporting and maintain accounting controls for operating receivables. Manage cash resources to ensure sufficient liquidity while maximizing investment income within a prudent level of risk.

Financing and Pensions Manage the Authority’s debt portfolio to ensure compliance with covenants of indentures and loan agreements and the timely payment of debt service. Analyze potential financing transactions and manage the negotiation and implementation of transactions utilizing public municipal debt markets or private placements and loan agreements. Negotiate pension investment management contracts, manage relationships with pension managers, and act as liaison among pension committee, consultants, and pension managers. Provide oversight of investment options and manager/fund performance of Employee Deferred Compensation Plan 457b assets.

Revenue Accounting, Operating Grants, Accounts Receivable and Fixed Assets Provide accurate reporting and maintain accounting controls for operating revenues, operating subsidy grants, route guarantees, and fixed assets. Prepare applications and billings for operating subsidies, provide pass-through funding to sub grantees and monitor compliance and accounts for capitalization and disposition of grant and non-grant property and related depreciation and contributed capital. Works closely with various teams to ensure the proper recording for the sales of boarding instruments and parking fees during transition from legacy fare system to SEPTA Key.

GENERAL ACCOUNTING Manage the Authority’s financial reporting and accounting activities in accordance with generally accepted accounting principles and governmental regulations. Produce timely and accurate financial reports and properly maintain the accounting system and related internal control structure, which includes managing the monthly and annual financial general ledger close process. Prepare and issue monthly financial and statistical reports to the SEPTA Board and senior management. Prepare required quarterly and audited financial reports that are issued to various financial institutions and government agencies that provide debt financing or subsidies to the Authority.


Finance


OPERATING BUDGET Develop a budget plan based upon an evaluation of each department's operating needs in relation to the Authority's overall available resources. Review and modify the consolidated results of all proposals to ensure that projected expenditures are balanced with projected revenues and subsidies. Develop annual operating budget document and multi-year financial forecast. Evaluate proposed financial commitments and personnel requests on an ongoing basis to ensure sufficient funding and adherence to budget. Oversee utility accounts including the review and approval of utility invoices for payment. Conduct monthly analysis to track and forecast financial performance.

Financial Reporting and Systems Maintain the Corporate Performance Management (CPM) software used to produce the annual operating budget at the expense object level and integrate with the mainframe environment. Support and train the departmental users of the budgeting system. Coordinate with Information Technology to produce, maintain and distribute monthly and annual internal financial reports.

Specialized Support Assignments Provide financial analysis and forecasting for substantive financial issues impacting the Authority including bargaining unit contract negotiations, propulsion power, utilities, fuel contracts and income generating contracts. Provide financial analysis for internal discussions and Board briefings.

PAYROLL Process the Authority’s payroll in a timely and accurate manner. Ensure that payroll-related data has been balanced and reconciled. Process all wage deductions and tax withholdings. Responsible for reporting of tax withholdings and all quarterly and annual tax returns. Prepares all bargaining unit contractual wage increases. Ultimately responsible for all payroll-related record keeping as well as verifying the reliability of the data.

REVENUE, RIDERSHIP, ADVERTISING AND SALES Form a centralized leadership capacity to coordinate multifaceted operations including revenue generation via fare media, parking garages, and non-transportation related advertising income. Monitors and officially reports ridership levels and affiliated revenues. Coordinate the Division’s participation in all financial, operational and customer facing aspects to further the advancement of the SEPTA Key Program.

Revenue and Ridership Management Develop and report monthly ridership and revenue levels. Manage all ridership and revenue data and issue reports as market conditions demand. Issue all required revenue and ridership reports to governmental and ancillary agencies. Develop and support all passenger revenue pricing and tariffs and incorporate data received from the SEPTA Key Program into the data stream.

Sales Administers and/or conducts the sale of all prepaid fare instruments within the SEPTA service area. Manage the daily operation of five full-service sales centers, the Transit Store, and the SEPTA Key web portals. Manages and coordinates sales to over 1,000 external sales venues such as corporate entities, school districts, and Social Service agencies. Validates and issues refunds and adjustments for lost rides and unneeded fare products. Works closely with various teams to ensure the effective transition from legacy fare items to new SEPTA Key media.

Advertising Responsible for administration of transit and Regional Rail advertising, which includes station naming, bus and railcar exterior wraps, station and interior vehicle digital screens, station and street level digital screens, and static posters. Responsible for administration of outdoor advertising which includes an extensive static and digital billboard network.


Finance




I. The Customer Experience a) Continue to nurture stakeholder relationshipsthrough periodic briefings with federal, state andlocal officials, Citizen Advisory Committee, YouthAdvisory Council, SEPTA Advisory Committee forAccessible Transportation, and other keystakeholder groups.

b) Complete SEPTA Key rollout for Regional Rail,Parking Operations, Employer Portal, and CCT.

c) Continue to provide Ambassador support for majorevents.

II. Employee Development a) Proactively improve employee communications.b) Continue to invest in workplace improvements.

III. Rebuilding the System a) Continue to develop, advance, and seek funding fora 12-year capital program that focuses on achievinga state of good repair.

b) Advance the procurement of Enterprise ResourcePlanning (ERP) Financial Suite

IV. SEPTA is a Business a) Continue to produce a balanced operating budgetand improve the economic efficiency of businessprocesses.

b) Provide financial analysis to support labor contractnegotiations.

c) Increase ridership capacity in key growth areas andalign additional parking capacity with regionaltransportation needs.

d) Leverage investments to maximize ridershipgrowth.

e) Pursue innovative financing techniques to advancestate of good repair and other core capacityinitiatives.

V. Safety as the Foundation a) Advance capital projects with safety as a keyobjective

b) Continue implementation of employee-focusedsafety and security campaigns


Finance




I. The CustomerExperience

• Launched TrailPass, Independence Day Pass and Rail QuickTrip options for SEPTA Key. Also launched Corporate PartnerProgram to allow employers to reload employee Key Cardsusing pre-tax withholdings.

• Entered new agreement to increase the External RetailNetwork from 500 locations to 1,000 locations available topurchase and reload SEPTA Key Cards.

• Accelerated the issuance of Senior and Disabled Fare Cardsalong with replacements for lost/stolen cards.

• Completed Social Agency Disposable Smart Media (DSM)Partners Program. Currently operating with multiple paymentprofile options, an array of four different fare media options andwith over 800 agencies registered and participating.

II. WorkplaceDevelopment andSupport

• Developed partnerships with community groups, businessassociations, transportation agencies, and other stakeholdersto evaluate opportunities to serve new markets.

III. Rebuilding theSystem

• SEPTA secured several competitive awards to advance projectsthat will rebuild the system:

1) SEPTA was awarded a federal Bus and Bus Facilities grant inthe amount of $2.5 million for Direct Bus Phase B, whichincludes the design and construction of eight enhanced busstations to extend SEPTA’s Roosevelt Boulevard Direct BusService from Frankford Transportation Center to WissahickonTransportation Center. The enhanced bus stations will improveoverall site conditions at each location including accessibilityenhancements, lighting, landscaping, and real-time information.In partnership with the City of Philadelphia, SEPTA launchedPhase A of Roosevelt Boulevard Direct Bus service in October2017. Eight new bus stations were constructed from NeshaminyMall in Bucks County to Frankford Transportation Center inPhiladelphia. The service features elements of Bus RapidTransit including limited stop spacing and specially-brandedstations and buses. Based on SEPTA’s Route 14 service, DirectBus provides a more efficient trip (28% travel time decrease)and higher frequency (10-15 minute headways 15 hours/day).

2) SEPTA was awarded $1 million in VW Class 8 VehicleProgram funds to replace old utility vehicles with vehicles usingcleaner technology.

3) A $3.8 million federal award was secured to purchaseenvironmentally friendly replacement work locomotives that willbe operated throughout the five county region.

4) SEPTA was awarded a $4.3 million Federal Low-No programgrant for the power infrastructure project at Midvale. The projectwill leverage existing electric traction subway power sources toestablish a viable, economic, resilient, redundant, and scalablesource of energy for battery electric buses at Midvale Depot.


Finance




III. Rebuilding theSystem(continued)

• SEPTA was awarded $8.3 million through the Federal StatePartnership for State of Good Repair Program for therestoration of 10 miles of track west of Paoli on the HarrisburgLine, which includes the restoration of Track 2 Glen to ThornInterlocking and installation of Bidirectional Signaling Downsto Thorn Interlocking. SEPTA partnered with Amtrak andPennDOT on the application.

• Consistent with SEPTA’s mandate to seek alternativesources of revenue in support of transit operations, revenuegeneration continued from the sale of digital advertising atstation, on vehicles and through long term agreements withbillboard companies. SEPTA has executed agreements toexpand its digital presence at stations in conjunction with theexecution of option years with its advertising contractor. Thiswill consist of digital expansion to almost every Regional Railstation throughout the service area. The delivery of a newbus fleet continues with each bus equipped with 2 digitalscreens and Wi-Fi capability. A total of 525 buses equippedwith 1,050 screens will be delivered by the year 2021.

• Additional revenue was generated from an agreement withthe University of Pennsylvania Health System to re-nameUniversity City station to Penn Medicine

• Secured Board adoption of a balanced comprehensive twelveyear capital program.

• Completed software upgrade of the Operating Budgetfinancial system.

• The CARES Act provides capital dollars totaling $24,850,000to support SEPTA’s response to the Covid-19 coronaviruspandemic. These capital projects include:

1) Installation of Automatic Passenger Counters (APCs) on1,144 revenue vehicles ($13,950,000)

2) Installation of Trolley Operator Protective Barriers on 188vehicles ($1,400,000)

3) Installation of Fencing along the Center City Concourse &Fare Line Relocation at Frankford, Norristown, and 69thStreet Transportation Centers ($9,500,000).

IV. SEPTA is aBusiness

• Successfully produced a balanced operating budget for the21th consecutive year.


Finance




V. Safety and Securityas the Foundation

• SEPTA was awarded a Federal Operation Life Saver grantwhich is designed to educate the traveling public aboutwarning signs and risk factors for suicide in order to increaseawareness and self-efficacy for assisting Veterans and FirstResponders in need.

• Continued to include funding for the Bus and Trolley OperatorSafety Shields project in the Twelve Year Capital Program.Installation of these shields will help protect the operator inthe event of an emergency. The shields will be installed onSEPTA’s bus, trolley, and Norristown High Speed Linevehicles.

• Continued to include funding for the Vehicle OverhaulProgram, which provides for the systematic replacement orupgrade of systems on SEPTA’s rolling stock. Prudent fleetmanagement requires a program of preventive maintenancefor optimal fleet reliability, service quality, efficientperformance, and passenger comfort.

• Continued to include funding for the Infrastructure SafetyRenewal Program which provides for the restoration bySEPTA forces of SEPTA’s City and Suburban transit andrailroad infrastructure to a state of good repair. Programsinclude Track and Right of Way Projects, Station facilities,Communications and Signals, Power Systems, andMaintenance/Support Facilities.

• SEPTA was selected to receive a $4.2 million grant from theFederal Emergency Management Agency (FEMA) to fundspecialized transit police units. These units are deployed toprotect critical infrastructure and customers from acts ofterrorism and other emergencies. This award also funded theinstallation of security fencing at the Fern Rock Complexwhich stores and maintains SEPTA’s Broad Street Subwayfleet; and the purchase of Cyber Security Software. Inaddition, the Authority secured $500,000 from theDepartment of Justice for SEPTA Transit Police Body WornCameras.



SEPTA





Overview The newly created Planning and Strategic Initiatives Division oversees Innovation, Service Planning and Strategic Planning and Analysis. These departments advance development of business data assets, analysis and development of strategies and goals in the Authority’s Strategic Plan, development of strategic communications and outreach that are necessary in implementing the Authority’s Strategic Plan, coordination with regional planning partners, long range planning, community and station area planning, advancement of major planning and expansion projects, management and improvement of transit service, and the Annual Service Plan. This work includes facilitating business innovations that stem from the strategic plan and sustainability program plan, often acting as a business analyst for interdepartmental corporate initiatives and long-term capital and service planning project activities.

Headcount

OPERATING HEADCOUNT



Office of Innovation 8 - 8

Service Planning 27 15 42

Strategic Planning and Analysis 5 - 5

Total Operating Headcount 43 15 58

CAPITAL HEADCOUNT


Administration - - -

Office of Innovation - - -

Service Planning - - -



TOTAL HEADCOUNT



Office of Innovation 8 - 8

Service Planning 27 15 42






AGM Planning and Strategic Initiatives

Planning

Administration

Office of Innovation

Service Planning

Strategic Planning and Analysis





Net Labor



Office of Innovation 607 825 1,432

Service Planning 2,605 236 2,841

Strategic Planning and Analysis 465 2,722 3,187

Total $ 4,102 $ 3,784 $ 7,886


OFFICE OF INNOVATION

Data-Driven Decision Making Works with business units to develop, track, and report on Key Performance Indicators that measure progress towards strategic goals and objectives. Consult with those business units to develop forward-looking master plans to better align policies, procedures and practices with SEPTA’s Strategic Business Plan.

Sustainability Manage an award winning Sustainability Program based on a triple-bottom-line (economic, social, and environmental) approach. Focus areas include energy conservation, renewable energy, and waste management. Communicate progress on Sustainability Program key performance indicators and specific initiatives through the SEPTA website at septa.org/sustain and an Annual Report called “SEP-TAINABLE” released each spring.

Policy and Value Proposition Develop presentation and communication materials that make the business case for increased investment in SEPTA, emphasizing transit’s value proposition to drive economic growth, promote equity, advance sustainability, and improve public health, safety and quality of life. Collaborate with SEPTA Communications and Government Affairs to disseminate this information through brochures, presentations, and the SEPTA website at septa.org/strategic-plan/impact-report.

SERVICE PLANNING Plan and schedule service for City and Suburban (Victory and Frontier) transit division operations. Monitor and analyze route performance in accordance with applicable service standards to develop proposals for service improvements. Work with public and private partners to implement improvements to existing service and develop new service. Prepare the Annual Service Plan, which includes new service proposals and an annual economic review of all routes. Serve as liaison with city and county planning agencies, municipal governments, and Transportation Management Associations (TMA) regarding service planning issues. Coordinate tariff and public hearing process for all proposed route changes. Manage central transit shop database and Automatic Passenger counter (APC) data and reporting. Provide Authority-wide Geographical Information Systems (GIS) support.




STRATEGIC PLANNING AND ANALYSIS The efforts of the Strategic Planning and Analysis Department helps to create a shared vision for the future among the various communities, prioritizing capital funding, and the advancement of enhanced service.

Long-Range Planning Long-range plans emphasize comprehensive analysis of existing systems, ridership trends, and demographic analysis to make strategic investments to serve current and future transit needs. Such long-range plans include studies of rail system expansion, existing facilities improvements to support long-term growth, and analysis of bus service networks.

Municipal and Regional Plan Coordination SEPTA currently participates in many comprehensive plans, transportation studies, neighborhood plans, streetscape designs, and station area or Transit Oriented Development (TOD) plans. All of these studies impact SEPTA and customers in some manner, from how a roadway functions, to envisioning new development at a train station, to recommending new or improved service concepts.

Comprehensive Station and Service Analysis This type of plan enables high-quality, community-supported improvements to SEPTA stations and service. Comprehensive plans look holistically at infrastructure and service, not only to improve the customer experience and increase ridership, but also to identify ways to encourage economic development and improved multi-modal (pedestrian, bicycle, bus, and vehicular) access.

Strategic Business Plan SEPTA adopted its most recent 5-year Strategic Business Plan in 2014. This plan establishes a vision, mission, core values, and set of corporate objectives for strategy development for the Authority. SEPTA is currently developing an update to the plan.

Major Planning Programs SEPTA is currently advancing several major planning programs, including Comprehensive Bus Network Redesign, Trolley Modernization, and Wayfinding Master Plan. These projects are multi-disciplinary programs that will span several years and will require multiple SEPTA departments to work together to advance, as well as significant public outreach.






I. The Customer Experience a) Focus on strategic initiatives to improve transitservice reliability and route changes to addresschanging ridership levels.

II. Rebuilding the System a) Support prioritization of capital projectsb) Support inventory control initiatives in partnership

with Procurement and Supply Chain Management

III. SEPTA is a Business a) Develop long-range plans to prioritize future systemimprovement and expansion opportunities.

b) Continue to advance Comprehensive Bus NetworkRedesign and Trolley Modernization programs.

c) Support efforts to reduce downtown congestionthrough partnering with the City of Philadelphia andCenter City District on innovative solutions.

d) Continue to implement Energy Action Plane) Advance Ridership Growth Innovation Team

initiativesf) Publish Economic Impact Analysis and associated

materials

IV. Safety as the Foundation a) Implement new project proposals from the“Frequent Rider”, “Occasional Rider” and “NewRider” working groups, using the results of theCustomer Satisfaction Survey as an important inputfor brainstorming and project development.






I. The CustomerExperience

• Schedule adjustments made to over 60 routes to address on-time performance and changing ridership patterns through a re-allocation of buses and manpower within available OperatingBudget.

• Increased frequency on the Market-Frankford Line between6pm and 8pm to respond to changing ridership patterns.

• Bus Route 131 weekend service added to help support several24/7 employers and service initiated to the Shannondellretirement complex.

• Continued to update the Frequent Route Network map andrelated timetable re-designs.

• Completed the Alternative Analysis and Draft EnvironmentalImpact Statement (DEIS) for the King of Prussia Rail Project.The King of Prussia Rail Project is an extension of theNorristown High Speed Line to the King of Prussia area inUpper Merion Township, serving the King of Prussia Mall,Business Park and residential communities of this part of theregion. The DEIS document was released in October 2017, andSEPTA Board adopted the Locally Preferred Alternative inJanuary 2018. Work on the Final Environmental ImpactStatement has begun, and will continue through 2020. SEPTAhas concurrently advanced engineering work to 15% complete.

• Developed innovative transit maps that show SEPTA’s busnetwork by frequency, and serve to promote our routes thathave a frequency of 15 minutes or less, 15 hours per day and 5days per week. The transit maps will be crucial communicationtools through the upcoming Comprehensive Bus NetworkRedesign process.

• Progressed planning and analysis efforts for SEPTA’s TrolleyModernization program, including line-by-line stop/stationanalysis and external plan coordination.

II. WorkplaceDevelopment andSupport

• Published Welcome Book and began to distribute as part ofrevamped New Employee Orientation process

• During the COVID-19 pandemic, Strategic Planning andAnalysis led the pandemic recovery planning process, whichincluded organizing and coordinating Plan Ahead teams bydiscipline, developing projections, and taking strategic actionsto ensure safety

• Helped organize and coordinate strategic communications toensure the timely dissemination of information as changesrapidly unfolded






III. SEPTA is a Business • Finalized Ridership Growth Innovation Team strategicplan and began to implement

• Tracked progress towards implementation ofrecommendations in management reviews

• Published “cost of congestion” study• Advanced major sustainability initiatives, including solar

projects, energy efficiency initiatives, and a battery-electric bus master plan

• The Ridership Growth Working Groups looked at severalissues related to detours, language barriers and customerexperience. The display of “Route Detoured” text on theelectronic destination signs was implemented and furtherwork continues regarding how to address the needs ofpersons with limited English proficiency.

• Continued to implement the Five-Year Strategic BusinessPlan, and began work to update the next Five-Year StrategicBusiness Plan.

• Participated in numerous comprehensive long-range plansinvolving SEPTA assets throughout the region, including theDVRPC 2050 Connections Plan, the City of PhiladelphiaConnect Plan, City of Philadelphia District Plans, CountyComprehensive Plans, and local municipality comprehensiveand station area planning. Plans identify GreaterPhiladelphia’s vision for land use, the equipment, economicdevelopment, equity, and transportation.



SEPTA





Assistant General

Manager Employee

Development and Relations

Career Resource Connection

EEO/AA and

Employee Relations

Labor Relations

Training and

Development

Administration & Absence Management

Overview

This business unit was newly created in Fiscal Year 2017 with a focus on training, personnel development and employee relations for our administrative, management and bargaining unit employees.

Headcount

OPERATING HEADCOUNT

Mgmt. Maint. Total

Administration & Absence Management 6 - 6

Career Resource Connection 2 - 2

EEO/AA and Employee Relations 6 - 6

Labor Relations 8 5 13

Training and Development 106 - 106






Net Labor


Administration & Absence Management $ 1,058 $ - $ 1,058

Career Resource Connection 112 60 172

EEO/AA and Employee Relation 522 13 535

Labor Relations 1,151 265 1,416

Training and Development 9,169 747 9,916

Total $ 12,012 $ 1,085 $ 13,097

FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $8,756 $9,037 $10,358 $10,522 $12,012

Headcount 118 122 129 129 133

0

20

40

60

80

100

120

140

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Employee Development & Relations


$ In Thousands

FY 17 FY 18 FY 19 FY 20 FY 21 Budget

M&S $721 $927 $1,022 $644 $1,085

$0

$200

$400

$600

$800

$1,000

$1,200

Employee Development & Relations


$ In Thousands





CAREER RESOURCE CONNECTION (CRC) Serves as a centralized operation and resource for external candidates interested in joining SEPTA and/or learning about job opportunities, and equips internal employees with resources to further develop and manage their career paths including career coaching and counseling. In addition, the CRC supports the Recruitment Department in pre-employment assessment/ selection by scheduling and conducting pre-employment assessments, interviews and New Employee Orientation (onboarding) sessions. The CRC also works interdepartmentally with hiring managers to assess and provide job task analysis and assessment overhauls.

EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION / TITLE VI AND EMPLOYEE RELATIONS (EEO/AA&ER) Implements and oversees the Authority’s policies related to equal employment opportunity, anti-discrimination, and diversity and inclusion to address the needs of an increasingly diverse workplace.

Diversity and Inclusion Initiatives Promotes employee engagement, inclusivity and a celebration of diversity through trainings, workshops, targeted discussions and other activities.

Anti-Harassment Trainings Provides education and training for employees on harassment prevention, protected classes and workplace violence.

Hiring and Promotion Ensures compliance with SEPTA’s EEO/AA Policies and the Federal Transit Administration’s (FTA) regulations with respect to fair and equal practices in the hiring, interview and promotion of SAM employees.

SAM Discipline and Appeals Provides guidance and oversees the administration of discipline and performance improvement plans to ensure fair and consistent application of the Discipline and Appeals Policy.

Accommodations Provides accommodations for those whose disability, religious beliefs, observances or practices conflict with a specific task or requirement of the position or an application process.

Investigations Responds to complaints of discrimination/harassment filed internally and externally. Handles a wide variety of employee relations issues as well as workplace trainings.

LABOR RELATIONS Conducts all labor negotiations with the bargaining units, handles all grievances, arbitrations, unemployment claims, and Labor Board cases.

Negotiations Serves as lead negotiator for all labor agreements with the Authority's collective bargaining units in accordance with State and Federal Laws.

Grievances, Arbitrations and Special Board of Adjustment (SBA) Hears all third level and Labor Relations step grievances and represents the Authority in all arbitrations, SBA Appeals, and related litigation. Serves as primary liaison with all attorneys retained on special arbitration cases or other litigation.




Case Presentation to the Pennsylvania Labor Relations Board (PLRB) Prepares and presents all cases associated with the PLRB as they are filed by bargaining units and the Authority.

Job Classification/Wage Administration Directs preparation of new and revised job descriptions for hourly classification and coordinates evaluations of bargaining unit positions and negotiates job restructuring and classification issues. Prepares and publishes all bargaining unit and non-supervisory wage rate manuals.

Contract Training Conducts relevant training of supervisors in bargaining unit contract interpretation and enforcement.

Joint Labor Management Relations Conducts joint productivity meetings with labor representatives to promote the safe, efficient, and economical operation of the Authority.

Unemployment Compensation Directs all internal Unemployment Compensation activities, including administration of all claims and representations of Authority positions in hearings and appeals.

TRAINING AND DEVELOPMENT Provides training programs to improve employee performance, teach new skills, or retrain employees as required to ensure that the work force has a comprehensive understanding of regulations, procedures, policies, and skills to perform their assigned duties. Responsible for the highest quality training and follow-up recertification programs for transportation, maintenance, and management employees.

ABSENCE MANAGEMENT Track data for the Authority on absenteeism and the Family Medical Leave Act (FMLA). Provide detailed analysis of data to determine problem areas within the Authority. Conduct monthly meetings to review data with senior management throughout the Authority. Provide training for managers on FMLA rules and SEPTA’s attendance policy.






I. Implement aSuccessionPlanningProcess

a) Support multi-transit agency Leadership Exchange DevelopmentProgram

b) Create a SAM onboarding program to complement employeeorientation

c) Leverage training simulators to improve efficiency of trainingstaff

d) Develop a training manual for Absence Management coveringcoordination with multiple departments as well as severalcomputer programs

II. ProvideLeadership forHuman CapitalDevelopment

a) Explore apprenticeship opportunities in order to ensure pipelinefor trades positions

b) Support efforts of tradeswomen including career counseling,outreach efforts and test preparation

III. Workforce andDevelopmentSupport

a) Work with the Training Department and Senior Directors toconduct a “needs assessment” and review training critiques todetermine possible new areas of emphasis and innovations intraining hosted by Labor Relations

b) Continue Coaching/Counseling sessions in conjunction with theTraining Department to assist employees with career andpromotional coaching as well as business and career tips

c) Implement “Study Group” sessions to assist employees withtesting preparations for the Apprentice Program

d) Move forward with the evaluation of the engineer and conductor“fit”’ tests to determine whether SEPTA should adopt these testsfor incoming trainees

e) Support efforts to create new onboarding program for SAMemployees

IV. Safety andSecurity as theFoundation

a) Labor Relations continue its active role in Operational SafetyImprovement Program to support Operation’s efforts to improvesafety on City rail.

b) Continue to provide a secure and confidential testingenvironment for internal and external candidates.

V. CustomerExperience

a) Review Career Resource Connection (CRC) Testing processesto see where it can incorporate additional streamlining andincrease maximum potential.

b) Coordinate with recruiting high stake campaigns (i.e. WestPhiladelphia Skills Initiative and Electrical Internships)

c) Continue to conduct monthly business meetings with recruitmentin order to continue to cohesively align overall organizationalgoals and objectives as well as identify upcoming issues







I. Implement aSuccession PlanningProcess

• Developed and launched an Employee Development Plan.

• Re-designed entry and mid-managers curriculum to be moreinteractive and competency/hierarchy based.

II. Provide Leadershipfor Human CapitalDevelopment

• Expanded employee support services outside of the CareerResource Center including test preparation, interviewing andresume writing for Regional Rail personnel at the PersonnelAssignment Office.

• Launched a micro site on the employee Intranet called“Knowledge Up” which provides short duration monthlyeducational topics.

III. Customer Experience • Streamlined CRC-Testing processes assessment waiting timefrom more than 20 minutes to less than 10 minutes.

• Coordinated four high volume testing/recruitment campaigns forBus Operator and Assistant Conductor/Engineer positions inorder to meet high recruitment demands.

• Conducted monthly business meetings with recruitment in orderto continue to cohesively align overall organizational goals andobjectives as well as identify upcoming issues or recruitmentcampaigns needing additional testing resources.

• Completed renovations within the CRC which includes interviewrooms for skill trades and other frontline positions and careercoaching.

• Regularly attend trainings and webinars from the NationalEmployment Law Institute, Equal Employment OpportunityCommission, and the PA Employment Law Institute to ensureSEPTA remains up to date on the prevailing case laws.


V. CustomerExperience(continued)

d) Enhance the “resource:” aspect of the CRC by implementingComputer Familiarization sessions as well as implementinginnovative and creative ways to utilize the CRC for increasedteam building and outreach for employees.

VI. SEPTA is aBusiness

a) Continue process of reviewing assessments to ensurealignment with job descriptions.

b) Publish updated testing and retesting guidelines andprocedures to ensure accuracy in preparation for publishing tothe new Intranet. These guidelines help to address questionsabout deviations to testing protocols and practices.

c) Visit locations to analyze contributing factors and mitigateemployee absences.






IV. SEPTA is a Business • Finalized contractual agreements with seven bargaining units.

• Reviewed and updated testing and retesting guidelines andprocedures to ensure accuracy in preparation for publishing tothe new Intranet.

V. Safety and Securityas the Foundation

• Coordinated with the Medical Department and Operations toestablish a pilot Fitness for Duty program for NHSL and Media/Sharon Hill operators and will coordinate communication withthe union regarding the program.

• Provided secure testing environment for internal and externalcandidates as well as maintaining confidentiality with testscores and integrity of testing assessments.

• Implemented the newly integrated and secure Cloud-basedtesting platform Questionmark OnDemand

• Initiated a Request for Proposals for a web-based trainingprogram in EEO and civility, which will be accessible to allSEPTA employees.

VI. WorkforceDevelopment andSupport

• Coordinated and instructed Labor Relations 101 andSupervising Hourly Employee courses. Conducted specificLabor Relations training for Sub-El managers at the request ofOperations.

• Met as members and communicated with peers in the LaborRelations Association of Passenger Railroads and Transit LaborExchange networks to look for new opportunities, innovativeideas, best practices and labor law developments with otherpassenger rail and transit agencies.

• Coordinated over 120 Career Coaching/Counseling sessions inconjunction with the Training Department to assist employeeswith career and promotional coaching as well as Business andCareer tips.

• Hosted four Diversity and Inclusion sessions.

• Led a series of LGBTQ awareness efforts to train Regional Railmanagement. Sponsored a table for the City’s annual PrideParade and Outfest events.



SEPTA

Human Resources


Human Resources


Overview

The Human Resources Division provides recruitment and talent management, cost effective benefits and pension programs, handles salary administration and the human resources information systems (HRIS), management of Authority policies and divisional budget, as well as directing the medical department and related programs. The Division is charged with recruiting new employees and helping them assimilate, grow, learn and remain productive assets to the Authority. Support is sustained from the onset of initial interest in the Authority, until long after their departure from employment.

Headcount

OPERATING HEADCOUNT



Employee Services 23 3 26

Employee Medical Services 5 10 15

Compensation/HRIS 5 4 9



Human Resources

Employee Services

Recruitment

Employee Benefit Services


Employee Medical Services

Compensation/HRIS

Administration


Human Resources



Net Labor



Employee Services 2,236 547 2,783

Employee Medical Services 1,116 261 1,377

Compensation/HRIS 674 45 719

Total $ 4,596 $ 859 $ 5,455

Note: Human Resources was re-structured in FY 2017, resulting in the creation of a second department named Employee Development and Relations.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $12,368 $4,462 $4,040 $4,066 $4,291 $4,596

Headcount 159 53 53 53 53 54

020406080100120140160180

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Human Resources


$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $1,029 $699 $694 $709 $743 $859

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Human Resources


$ In Thousands


Human Resources



HUMAN RESOURCES TEAM The Authority’s dynamic business environment requires that Human Resources develop and implement employee initiatives that support the business strategy (HR Services) and sustain the needs of our employees amidst the consistently high operational tempo of transportation.

HUMAN RESOURCES (HR) EMPLOYEE SERVICES Human Resources Employee Services focuses on Strategic Initiatives, Recruitment, and Employee Benefit Services.

Recruitment Direct and manage recruitment, hiring and transferring of a qualified and competent workforce ensuring equal opportunities by applying controls and compliance to applicable laws throughout the recruitment and hiring process. Continue to assure communication, documentation and a fair selection process in filling position vacancies.

Strategic Initiatives Identify, develop, foster and maintain working relationships with external workforce organizations, educational and non-profit institutions to build partnerships that create synergistic efforts to produce qualified work-ready employment candidates. Provide basic Human Resources support to SEPTA’s employee population on an enterprise-wide scale (HR Connection). Conduct research on new avenues to address human capital issues and provide feedback on trends and issues facing potential new hire populations. Inform management of new catalyst programs available to expand the sphere of potential employment influence the Authority has in developing skilled employees for future hire.

Employee Benefits Services Design, negotiate and administer the benefits program, including medical, dental, prescription drug, life insurance, long term disability, short term disability, supplemental insurance, COBRA, pension, deferred compensation (457b Plan), supplemental voluntary benefits, and flexible benefits programs for 30,000 individuals, including employees, retirees and families. Conducts benefit orientations and information sessions concerning all employee benefit programs.

EMPLOYEE MEDICAL SERVICES Execute, maintain and provide regular reports on the drug and alcohol testing requirements in accordance with Authority policy and U.S. Department of Transportation regulations.

Employee Medical Services Responsible for conducting medical examinations for fitness for duty, new hire physicals, medical monitoring/surveillance programs (e.g. hypertension, asbestos), hearing conservation, etc. as required by the Authority. Administer the Employee Assistance Program (EAP) for all employees and their dependents. Manage the Wellness Program and medical case management.

SEPTA Wellness Outreach Good health and wellness improves the quality of employees' personal and professional lives, can reduce workplace injuries, absenteeism, and health care costs, and enhance employee morale through individual and group participation. The wellness program develops efforts to raise employees' awareness about lifestyle behaviors that promote good health and prevent disease, and provide information and resources to assist employees to achieve their optimum mental and physical health.


Human Resources


COMPENSATION/HRIS Develop, communicate and administer the compensation program for supervisory, administrative and management (SAM) employees. Evaluate SAM positions utilizing the Hay Evaluation System. Update employee and position-related data in the personnel system, monitor and train employees on the use of the Human Resource Information System (HRIS). Maintain personnel files for approximately 9,500 employees. Verify current and past employment for employees, and handle inquiries regarding mortgage and car loans, lost wages, and other supplemental insurance coverage. Oversee the assignment of employee photo ID’s for new employees and the replacement of ID’s when reported lost or damaged. Prepare SEPTA-wide Organizational Charts.



I. Human ResourcesInformation System (HRIS)Updates

a) Specific modules to be implemented include:-Applicant Tracking System-Core HR System-Organization Chart Software-Onboarding Website

b) Begin enhancements to additional modules ofthe new HRIS that include:-Performance Management software-Learning Management System

II. Procure New 3rd PartyBenefit Contracts

a) Procure and implement new contracts for various,

existing employee programs to include:

-Actuary

-Defined Benefit and Defined Contribution

Investment Consultants

-Dental Insurant for all SAM employees

-Employee Assistance Plan (EAP)

-Life and Long Term Disability

-Medical Claims Audit

-Catastrophic Stop Loss Insurance

-Affordable Care Reporting

III. Monitor Existing 3rd PartyBenefits

a) Conduct three audits related to medical claims,

prescription drugs and retiree drug subsidies.


Human Resources




I. Hire employees, replace

retirees

• Hired over 900 employees and increased headcount toapproximately 9,500 employees. Received Employer of ChoiceAward from City of Philadelphia. Held two Women in TradesFairs. Attended numerous job fairs and schools throughout allcounties.

II. Monitor key vacancies • Installed new software predicting the number of employees thatcould retire by job and by year.

III. Improve wellness • Implemented first Tele-Dietician/Wellness coaches for greater

access for our workforce. Expanded Sleep Apnea exams for

Regional Rail employees. Received Employer of Choice Award

for best Wellness Programs.

IV. Build strategic alliances

to hire the best

employees

• Revitalized Co-op program with Drexel University, implemented

strategic partnership with West Philadelphia Skills Initiative

(Center City District) to provide boot camp graduates into Bus

Operator positions.

V. Improved processes • Implemented individual assessment for applicants with arrestrecords that would have previously been disqualified.

• Reinvigorated Deferred Compensation Program via partnershipwith Prudential. Prudential increased participation rate from low40% to almost 50%. Won a national award for bestimplementation communication program. Installed new Rothfeature and outsourced loans.



SEPTA

Procurement, Supply Chain and Disadvantaged

Business Enterprise




Overview The Procurement, Supply Chain and Disadvantaged Business Enterprise (PSC & DBE) Division is responsible for SEPTA’s procurement, materials management, compliance and quality assurance, supply chain management, contract administration, and disadvantaged business enterprise programs.


Procurement, Supply Chain and Disadvantaged

Business Enterprise

Procurement and Supply Chain Management

Disadvantaged Business

Enterprise Program

Administration Contract Administration




Headcount

OPERATING HEADCOUNT



Contract Administration 16 - - 16

Disadvantaged Business Enterprise

Program

4 - - 4

Procurement and Supply Chain

Management

66 63 1 130


CAPITAL HEADCOUNT


Administration - - - -

Contract Administration - - - -


Program

5 - - 5


Management

7 - - 7

Total Capital Headcount 12 - - 12

TOTAL HEADCOUNT



Contract Administration 16 - - 16


Program

9 - - 9


Management

73 63 1 137






Net Labor



Contract Administration 1,330 25 1,355


Program

307 32 339


Management

8,637 307 8,944

Total $ 10,864 $ 379 $ 11,243

Note: Fiscal Year 2020 costs were high due to increased use of temporary help while vacancies were being filled and expenses pertaining to the move of material from an expiring lease inventory warehouse to a new leased warehouse location.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $9,409 $9,170 $8,794 $8,997 $9,326 $10,864

Headcount 162 162 162 162 164 167

0

50

100

150

200

250

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000



$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $359 $410 $595 $340 $1,525 $379

$0

$500

$1,000

$1,500

$2,000



$ In Thousands





PROCUREMENT AND SUPPLY CHAIN MANAGEMENT

Compliance and Quality Assurance Provide coordination and enforcement of SEPTA’s compliance with federal, state, and local funding agency regulations for approved capital projects, planning studies, and other non-operating projects. Participate in updating standard form contracts, the procurement manual and related policy instructions. Provide analytical reports, system administration, enhancements, contract processing, records management, and training support for the department. Audit procurement packages pertaining to the Authority’s purchasing process and funding regulations. Monitor Certified Payrolls for all SEPTA construction projects in accordance with the Davis-Bacon and related acts. Administer Authority-wide programs such as e-procurement, electronic stockless stationery, Procurement Card, and the Materials Management/Purchasing system.

Materials Management (Automotive and Rail) Perform analysis, forecasting, and identification of inventory requirements to determine adequate stocking levels to effectively purchase/lease stock and non-stock rail and vehicle parts, material, equipment, supplies, and services, except for major vehicle procurements. Provide direct field support to maintenance directors and shop personnel. Coordinate Authority-wide inventory reduction and control programs. Maximize return on investment through Asset Recovery programs and long term, market-based scrap metal contracts. Perform inventory requirements planning for vehicle overhaul programs and various maintenance projects.

Materials Management (Infrastructure) Perform analysis, forecasting, and identification of inventory requirements to determine adequate stocking levels to effectively purchase/lease stock and non-stock infrastructure, material, equipment, supplies, and services. Provide direct field support to maintenance directors and shop personnel. Perform requirements planning for various capital project programs and various maintenance projects.

Supply Chain Management Plan and coordinate inventory requirements with all Operations areas to meet short and long-term material needs. Administer storeroom operations, warehousing and distribution functions, including receipt, storage, issuance and control of all stock materials for the Authority's diversified fleet of vehicles, for vehicle overhaul programs and for infrastructure maintenance requirements. Administer SEPTA’s Vendor Managed Inventory Program.

CONTRACT ADMINISTRATION Perform solicitations, contract awards, and post-award administration including change orders, dispute resolution and contract closeout. Administer contracts by overseeing vendors to fulfill contractual obligations.

Construction and Vehicle Acquisition Perform procurement and administration of project-specific architectural, engineering and associated construction-related services, new construction, and renovations of the facilities and structures. Responsible for solicitation, award and administration of large scale new construction projects as a result of Act 89 funding, infrastructure hardening and resiliency programs, as well as major equipment purchases, including rail and bus fleets.




Professional and Technical Services Procure and administer revenue producing vehicles (buses and rail cars), employee benefits, insurance and associated passenger services such as paratransit and fixed route. Solicit, award, and administer professional services contracts including state and federal legislative services, advertising, brokers and lease and management services. Also includes technical services such as landscaping, janitorial, IT support maintenance and pest extermination.

DISADVANTAGED BUSINESS ENTERPRISE PROGRAM OFFICE (DBEPO)

Disadvantaged Business Enterprise (DBE) Certification Participates as one of five principal certifying agencies within the Commonwealth of Pennsylvania to provide one-stop shopping for firms seeking certification as a Disadvantaged Business Enterprise (DBE) in accordance with 49 CFR Parts 26 and 23. Represents the Authority as a managing member of the Commonwealth of Pennsylvania’s Unified Certification Program (PA UCP).

Small Business Enterprise (SBE) Program Administers the Small Business Enterprise Program to meaningfully involve small business concerns in procurement and contracting activities towards increasing the race-neutral portion of the Authority’s overall DBE goal.

DBE Compliance Reviews solicitations to ensure the meaningful involvement of DBE firms in the Authority’s procurement and contracting activities; establishes goals for applicable projects, evaluates bid/proposal submissions for adherence to DBE requirements, monitors projects for DBE goal achievement, and ensures equitable treatment of DBE firms performing on contracts.

DBE Program Outreach Provides technical assistance, guidance, and resources to all small businesses interested in pursuing contracting opportunities; coordinates internal and external outreach events; facilitates workshops and networking events for prime contractors, DBEs, and SBEs.






I. The Customer

Experience

a) Conduct customer satisfaction survey.

b) Ensure timely delivery of stock materials.

c) Ensure inventory accuracy.

d) Achieve optimum fill rate.

e) Ensure minimum number of revenue vehicles out of

service due to unavailability of materials (not to

exceed 10 per month.)

II. Employee Development a) Conduct Division Tour and Procurement trainings.

III. Rebuilding the System a) Develop and implement an SBE set-aside program.

IV. SEPTA is a Business a) Implement vendor performance program

b) Monitor and improve turnaround time for

solicitations/procurements

c) Develop dashboards for monitoring divisional

performance.

d) Achieve inventory reduction.

e) Achieve asset recovery

V. Safety as the Foundation a) Complete regular operations training and refreshers

for storeroom personnel.

b) Participate in safety events and initiatives.






I. The Customer

Experience

• Achieved inventory accuracy of 93% for Light Rail; 94% for

Regional Rail, and 76% for Bus.

• Hosted five DBE/SBE outreach events/workshops.

• Disseminated contracting/networking/outreach related

opportunities regularly via e-Blasts.

• Published DBE Program Office Newsletters.

• Annual average of the number of vehicles out of service

due to material non-availability was 7 per month compared

to a goal of less than 10.

II. Employee

Development

• Updated desk procedures and conducted cross-training

sessions.

• Conducted procurement training sessions.

• Developed training videos for personnel.

• Participated in professional development programs.

III. Rebuilding the

System

• Blanket contracts developed and implemented.

IV. SEPTA is a Business • Cameras installed, configured and tested at 26 locations,

many with connections directly to headquarters for

monitoring.

• Completed perimeter security fencing at three locations.

• Achieved asset recovery.

• Streamlined/expedited procurement processes.

• Implemented majority of the Management Consultant

Study recommendations for the DBE Program Office.

V. Safety as the

Foundation

• Conducted operations training and refreshers regularly for

storeroom personnel.

• Conducted safety briefings at all material distribution

centers.

• Participated in safety events



SEPTA






Audit and

Investigative Services

Internal Audit Office of the

Inspector General

Overview The Audit and Investigative Services Division conducts audits, reviews, and investigations of the Authority’s operations to promote economy, efficiency, and effectiveness and to detect and deter waste, fraud, abuse, and mismanagement. The Division includes the Internal Audit Department and the Office of the Inspector General.

Headcount

OPERATING HEADCOUNT

Mgmt. Police Total

Internal Audit 14 - 14

Office of the Inspector General 5 4 9





Budget


Net Labor


Internal Audit $ 1,163 $ 27 $ 1,190

Office of the Inspector General 836 11 847

Total $ 1,999 $ 38 $ 2,037

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $1,387 $1,320 $1,393 $1,506 $1,675 $1,999

Headcount 20 20 20 20 20 23

0

5

10

15

20

25

$0

$500

$1,000

$1,500

$2,000

$2,500

Audit & Investigative Services


$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $42 $28 $32 $19 $23 $38

$0

$10

$20

$30

$40

$50

Audit & Investigative Services


$ In Thousands* System Safety function transferred to Division in FY 12





INTERNAL AUDIT Internal Audit is an independent, objective, internal review and consulting activity designed to add value and improve the organization’s operations. It provides a systematic, disciplined approach to evaluate financial risk/exposure and improve the effectiveness of risk management, internal control, and governance processes.

Internal Audit conducts financial, compliance, and operational audits of departments within the Authority. The department is also responsible for the review of cost proposals and audits of cost reimbursement contracts and change order/claims. Additionally, Internal Audit provides a wide range of internal consulting support to departments upon request. The Department is comprised of Internal Audit, Information Technology, and Contract Audit sections.

Internal Audit Internal Audit is responsible for reviewing all areas within the Authority by performing formal audits of an entire process or independent reviews of a particular activity or account balance.

Information Technology A specialized sub-unit of Internal Audit that is responsible for reviewing new and existing computer applications, access security, and hardware. Independent data extracts and reporting support are also generated for Internal Audit and other divisions.

Contract Audit Contract Audit is responsible for auditing or reviewing third-party cost data in accordance with established policies and federal requirements. The work includes reviews of pre-contract cost proposals and audits of actual costs incurred on cost-plus-fixed-fee contracts. In addition, Contract Audit performs audits or reviews of cost documentation in support of change orders and claims.

OFFICE OF THE INSPECTOR GENERAL The Office of the Inspector General is responsible for conducting independent investigations relating to fraud, waste, abuse, and mismanagement. This is accomplished through continuous monitoring and investigations directed at specific concerns.






I. SEPTA is a business a) Advance the goal of managementaccountability by identifying and formalizingrequirements for areas determined toinvolve expenditures of Authority funds.

II. The Customer Experience a) Assemble a group representing Authority-wide individuals that have involvement withthe communication, reporting or remediationof Elevator/Escalator outages to determinewhether any efficiencies can be gained inthe process.

III. Workplace Development andSupport

a) Assist in advancing the Authority Policyteams to update and develop policies thatreflect the current needs of the Authority andcompliance with federal safety requirements.

IV. Formalize the InvestigativeServices Department’sAuthority Regarding WorkforceCooperation

a) Use the enabling legislation, independentlegal opinions, Authority policy and/or Boardintervention to define the parameters of theInvestigative Services (Inspector General)authority in investigation matters.






I. Develop a Statementof Changes as asource fordevelopment of theaudit schedule.

• IT Audit developed a report showing General Ledger accountchanges which was used to develop the CY 2020 auditschedule.

II. Determine the valueand cost ofdeveloping a datawarehouse for linkingdisparate systems

• Identified significant costs involved to link data keys to achievenew reporting. Investigated a low cost alternative for avisualization tool in MS Tableau. Supported the new HRIS andplanned migration to the cloud of INFOR financials as a priorityopportunity for data links.

III. Pursue cooperationthroughout theAuthority concerninginvestigation effortsby the InspectorGeneral

• Obtained two independent legal opinions confirming the roleand authority of the Inspector General to require cooperation ofall employees.

IV. Advance daily publiccommunicationsimpacting the disabledcommunity throughfacility inspectionfollowing reports ofelevator/escalatoroutages

• During FY 2020, outages were investigated fromcommunication through remediation efforts with the objectiveof determining the personnel involved and the reporting flow.Identification of the apparent communication gaps will move toinvestigate remediation efforts.

V. Continuousparticipation in theSEPTA KEY programefforts to create thesystemdocumentation andidentify areas forreview

• While not precipitated by the creation of system

documentation, involvement with KEY relating to the Crew

Remittance Office (CRO) was initiated in FY 2020. User

requirements were evaluated from an internal control

perspective. The Conduent design of KEY for the CRO will be

a focus for internal control in FY 2021.



SEPTA





Overview The Customer Experience and Advocacy Division is responsible for the development, implementation, and coordination of SEPTA customer service and customer advocacy initiatives. The Division acts as the clearing house for all customer information gathered across various channels, for collecting “customer intelligence”, for advancing the Authority’s “Customer-Focused” agenda, and for performing consumer research to help the organization ascertain customer priorities, satisfaction levels, and overall loyalty.

Headcount

OPERATING HEADCOUNT



Consumer Market Research and Analysis 2 - 2

Customer Development and Advocacy 4 - 4

Customer Service Center 14 60 74



Customer Experience

and Advocacy

Administration

Consumer

Market Research

and Analysis

Customer

Development and

Advocacy

Customer Service Center





Net Labor



Consumer Market Research and Analysis 151 - 151

Customer Development and Advocacy 304 - 304

Customer Service Center 4,912 12 4,924

Total $ 5,756 $ 363 $ 6,119

Note: FY 2020 expenses were low due to the scheduled customer satisfaction survey getting postponed as a result of the Covid-19 pandemic.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $4,919 $5,170 $5,076 $5,125 $5,261 $5,756

Headcount 82 84 84 84 84 84

0

20

40

60

80

100

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000



$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $425 $225 $418 $377 $209 $363

$0

$100

$200

$300

$400

$500



$ In Thousands





ADMINISTRATION Coordinate, manage and direct the financial and administrative activities for the Customer Experience and Advocacy Division.

CONSUMER MARKET RESEARCH AND ANALYSIS Understanding the needs and expectations of a business’ customers is vital to success. This unit uses qualitative and quantitative research, plus audits by service quality staff, to support the goals of the Division as well as other SEPTA business units. It also oversees the Service Quality Unit, SEPTA’s “Secret Shoppers” that assesses all aspects of the Customer Experience, anywhere and anytime.

CUSTOMER DEVELOPMENT AND ADVOCACY This group advances the Customer Experience through interdivisional initiatives, customer outreach/engagement, and new market development. Department Staff is responsible for leading the “Building a SEPTA Culture of Service and Creativity” (BASCSC) program, the Downtown Link Customer Experience, and the College Travel Center initiative. The Advocacy unit of Customer Development works with key stakeholder groups such as the Citizens Advisory Committee (CAC), Youth Advisory Council (YAC), and Delaware Valley Association of Rail Passengers (DVARP) and other transit advocacy groups, to foster transparency and broader customer involvement into the Authority’s decision making process.

CUSTOMER SERVICE The Contact Center is responsible for responding to customer issues and inquiries received via telephone, email, mail, fax and walk-ins concerning travel information, lost and found, complaints, suggestions, and commendations. It coordinates Authority-wide use and analysis of the Customer Relations Management (CRM) program VERITAS as a critical tool for better understanding customer expectations while also assisting internal units with their performance goals. The department also manages various “Social Customer Services” engagement channels on assorted social media platforms. The Contact Center is the primary conduit for coordinated activity with the SEPTA Key call center.






I. Nourish and advance a

wide array of Customer-

Focused initiatives

a) Using data from consumer research and the

VERITAS database, provide reports and analysis to

GM Team and others regarding customer concerns,

issues and priorities.

b) Work with other Divisions to ensure that the

customer service agenda remains vital and relevant

by closing out completed/obsolete initiatives and

introducing new ones.

c) Advocate for the inclusion of Customer Experience

attributes in critical SEPTA initiatives such as

SEPTA Key, Trolley Modernization, Comprehensive

Bus Network redesign and the development of the

SEPTA Concourse mode.

d) Ensure customer-related design features are fully

considered in facility and vehicle design, as well as

modal services, through formal Customer

Experience and Advocacy interaction.

e) Expand and enhance relationships with transit

advocacy groups.

II. Develop Customer-

Focused Workforce

a) Provide leadership to culture change initiatives such

as BASCSC that emphasize customer-focused

decision making and innovation.

b) Advocate, support and assist the development and

adoption of divisional customer-focused

organizational and personal goals.

c) Recognize SEPTA team members that have made a

significant contribution to customer satisfaction, peer

support or gaining/sustaining customer loyalty.

d) Design, implement and lead a new, interactive

cultural training program, “Navigating the Customer

Experience”, to promote self-awareness and team

building.






III. Employ technological

advancements to

improve Customer

Service

a) Continue efforts to establish SEPTA as the industry

leader in the innovative use of “social customer

service” across existing and new channels, which

foster timely engagement and transparency.

b) Provide enhanced real-time tools to Customer

Service Staff to allow accurate and timely

dissemination of information.

c) Continue to evolve organizationally from traditional

Customer Service to a modern Contact Center that

embraces “Customer Intelligence and Analytics” by

employing non-traditional business models and

emerging technology.

d) Assess opportunities for innovative use of

translation technology tools/software to allow Staff

to effectively communicate with those that are not

proficient in either English or Spanish.



I. Nourish and advance

a wide array of

Customer-Focused

Initiatives

External Customer • Increased customer engagement through the BASCSC “SEPTA

Customer Connection” program held at 11 different venues,

through the BASCSC Holiday Vehicle program and by Agent

engagement at principle transit centers.

• Advanced ongoing dialogue with colleges and universities to

market SEPTA to students and Staff as the preferred

transportation option.

• Advanced innovative new customer amenities such as the

Regional Rail Parking Car Wash program, Books in Transit and

Reading Terminal Market’s Jefferson Market Carts. Expanded

the partnership with Mural Arts, and Music and Moves program.

• Promoted and produced various SEPTA “Behind the Scenes”

programs for schoolchildren and continued administrating the

SEPTA Tours program.

• Led efforts to revitalize the Concourse Customer Experience

with special events such as UniverSoul Circus, Bach in the

Subway, and the Suburban Station Holiday Program. Planned

for the inaugural Great Philly Undercover Scavenger Hunt.






I. Nourish and advance

a wide array of

Customer-Focused

Initiatives (continued)

• Responded to approximately 1.3 million customer phone calls,

185,000 customer inquiries at field offices, and over 35,000

social media followers on several platforms.

• Supported various Stakeholder groups such as the Citizens

Advisory Committee, the Youth Advisory Council, the Clean Air

Council, 5th Square and others that promote public

transportation.

Internal Customer

• Expanded and promoted BASCSC employee recognition

through SEPTAcular, GM Awards and other divisional

initiatives.

• Advanced activities under the BASCSC banner designed to

improve morale and camaraderie, including Holiday Vehicle

Competition, Family Day at Clementon Park, the Bowling Bash

and GM Team Shadow Days.

II. Develop Customer-

Focused Workforce

• Staff participated in training programs designed to consistently

support SEPTA’s Customer Service goals.

• Implemented a new interactive class entitled Navigating the

Customer Experience.

III. Employ technological

advancements to

improve Customer

Service

• The Authority’s social media team continues to hold “Best in

Class” status for its work centered on Twitter accounts

@SEPTA_Social and @SEPTAKey as well as its Instagram

accounts and customer engagement on SEPTA’s Facebook

page.

• Tested an innovative “texting” platform to assess market

potential in transit.

• Advanced the use of a new English as a Second Language

tool to assist individuals in communicating with Staff.

• Updated and refined the use of social media software tools that

allow for more effective and efficient customer engagement.



SEPTA






Claims

Corporate and Business Operations

Litigation

Corporate Litigation

Video and Intake Operations

Risk Management

Administration

Overview The Office of General Counsel Division consists of the Corporate and Business Operations, Video and Intake Operations, Litigation, Corporate Litigation, Claims, and Risk Management Departments, all reporting to the Office of General Counsel.

Headcount

OPERATING HEADCOUNT



Claims 16 11 27

Corporate and Business Operations 10 - 10

Litigation 29 - 29

Corporate Litigation 4 - 4

Video and Intake Operations 19 12 31

Risk Management 9 - 9






Net Labor


Administration $ 1,088 $ 20 $ 1,108

Claims 1,870 1,650 3,520

Corporate and Business Operations 950 6,295 7,245

Litigation 2,403 3,077 5,480

Corporate Litigation 335 2,389 2,724

Video and Intake Operations 2,024 1,869 3,893

Risk Management 715 36 751

Total $ 9,385 $ 15,336 $ 24,721

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $7,769 $8,188 $8,437 $8,383 $8,902 $9,385

Headcount 115 118 117 117 117 118

0

20

40

60

80

100

120

$0

$1,500

$3,000

$4,500

$6,000

$7,500

$9,000

$10,500



$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $16,644 $16,548 $15,611 $18,139 $16,156 $15,336

$13,000

$14,000

$15,000

$16,000

$17,000

$18,000

$19,000



$ In Thousands





CORPORATE Lawyers within the Corporate Department negotiate and draft legal contracts and other documents that support and promote the activities of client departments. Counsel advises management on matters that have legal implications, assists other departments in drafting documents that have legal-related elements, and works with outside attorneys handling matters involving specialty areas of the law. The Corporate Department is involved in all transactional legal matters such as those related to procurements, construction, technology contracts, real estate, environmental law, energy, sustainability, and railroads and property use.

CLAIMS AND INTAKE OPERATIONS The Video and Intake Unit is responsible for performing intake functions for all matters, claims and requests that come into the Office of General Counsel; seeking and compiling all information, data and records needed to handle all OGC matters; and featuring those functions associated with carrying-out the Authority’s video surveillance program. The video program includes planning, collecting, reviewing, preserving, storing and producing data from video systems on SEPTA vehicles and in stations. Staff within this Department also respond to and handle requests for, notification of, and production of employee witnesses for court matters.

The Claims Unit is responsible for the handling of personal injury and property damage claims. Many claims are handled in tandem with attorneys in the Litigation Department, from first notice of the claim through its final resolution. Claim handling involves: thorough and detailed examination of evidence, a determination of liability and assessment of potential damages. The existence of pertinent video provides a key piece of beneficial evidence, one which often provides a dispositive defense to a claim. If the Authority is liable to an individual for injuries or property damage, then Staff will attempt to settle the claim in an equitable and prudent manner. For claims where the Authority either is not liable or is not able to obtain a just settlement, the case is defended in court by the attorneys of the Litigation Department.

LITIGATION DEPARTMENT The Litigation Department is responsible for representing SEPTA in personal injury and property damage claims once a lawsuit is filed. Attorneys within the Litigation Department (as well as outside counsel who are managed by Department attorneys) handle all aspects of litigation from pleadings through discovery and up to and including trial. The attorneys evaluate cases and make settlement recommendations. When appropriate, the Department attorneys negotiate final settlements. The Litigation Department also handles appellate cases in the Commonwealth Court and Supreme Court of Pennsylvania on issues regarding SEPTA cases as well as others that may affect SEPTA as a mass transit agency and/or as a Commonwealth Party.

CORPORATE LITIGATION DEPARTMENT Lawyers within the Corporate Litigation Department represent SEPTA in civil actions that are other than personal injury and property damage. Corporate litigation actions include, labor and employment matters, civil rights cases, contracts and construction suits, and trademark registration and infringements. This Department also provides legal counsel to management on employment matters and statutes (including Title VI, ADAAA, ADEA, FMLA, FLSA, and USERRA) and employment concerns before state and federal administrative agencies. Additionally, Staff within this Department handles the intake, response, and appeal of requests for Authority records submitted under the Pennsylvania Right-to-Know Law, third party subpoena requests for records and litigation holds.




RISK MANAGEMENT The Risk Management Department manages SEPTA’s programs to compensate injured employees who have claims under the Commonwealth’s workers’ compensation laws or under the Federal Employers Liability Act (FELA). Department Staff oversee a third party administrator of workers’ compensation claims, handling medical and indemnity management, coordinating internal vocational rehabilitation, and managing all alternative and transitional duty programs. Staff also administers supplemental benefits as prescribed by labor contracts. FELA Unit Staff oversee a third party administrator of FELA claims which monitors, settles, and oversees litigation of claims of injured railroad workers. The Insurance Unit Staff helps to manage the Authority’s exposure to risk under transactional situations, through the application of risk management tools such as insurance programs, self-insurance administration, performance bonds, and letters of credit. The Business Operations Unit within this Department is responsible for the administrative and business functions that support the Office of General Counsel (OGC), such as staffing and employment management, training, budget development, administering legal services contracts and managing office equipment and supplies.



I. Expand upon the pilot

program developed

during FY 2020 to

extend to all outside

Counsel Cases

a) Revive/update and implement guidelines to manage

tort claims assigned to outside counsel, wherein

each matter in the Pilot Program is handled by a

Claims Supervisor under the supervision of a Claims

Manager.

b) All requests for surveillance, Insurance Medical

Examinations or other experts will be directed to the

Claims Supervisor for review and a summary with a

recommendation given to the Claims Manager.

c) Critical Event Review approach being used to target

the following events:

• New Case Assessments

• Phone Conferences with Claims Supervisors

• Case Management Conferences

• Discovery Responses

• Depositions

• Settlement Conferences

d) General Counsel and Deputy General Counsel will

continue to oversee the litigation of these matters.






II. Implement Document

Management for the

Corporate Department

using SharePoint

a) Application will have functionality to organize

matters based on a unique identification scheme, to

organize and store information by matter, to readily

manage emails, to provide tickler reminders, and to

allow for queries and reporting

III. Improve FELA Claims

Management Process

a) Finalize transition of FELA program to new vendor.

b) Document claims management process

c) Enhance early claims investigation practices to

ensure all facts are frozen at the time of incident

d) Provide lost productivity data to key Railroad

Management Staff

IV. Develop a continuing

plan to update Vehicle

Video Program

a) Utilize capital funding for replacement

b) Secure contract for reliable maintenance and

troubleshooting of video equipment






I. Establish a pilot program for

Managing of Tort Claims by

Claims Managers

• Program has been successful and will be expanded to

cases handled by Outside Counsel.

II. Implement Document

Management for the Corporate

Department using SharePoint

• Corporate Staff are now using the SharePoint

application to track, monitor, organize, and store the

various documents and other data for corporate legal

matters.

III. Take next steps in

disseminating Litigation Loan

“Pitfalls & Dangers” education

• This initiative remains ongoing.

• Revision to the FELA Claims Management program

underway will include awareness on dangers of

Litigation Loans.

IV. Develop a continuing plan to

update Vehicle Video Program

• This goal remains ongoing.

• Formalized plan to regularly update equipment is

currently being developed.



SEPTA





Overview The Public and Government Affairs Division – comprised of Administration, Government and Community Relations, Marketing and Promotions, and Media Relations – is responsible for communicating the Authority’s official position on key issues, enhancing public perception, and developing campaigns that promote transit awareness and ridership growth. The Division builds and maintains strong working relationships with federal, state, and local elected officials, members of the media and transit stakeholders to ensure SEPTA’s priorities and message effectively reach lawmakers and the public.

Headcount

OPERATING HEADCOUNT



Government and Community Relations 9 - 9

Marketing and Promotions 3 - 3

Media Relations 4 - 4



Public and

Government Affairs

Government and

Community Relations

Marketing and

Promotions

Media Relations

Administration





Net Labor


Administration $ 598 $ 997 $ 1,595

Government and Community Relations 685 22 707

Marketing and Promotions 173 3,048 3,221

Media Relations 318 7 325

Total $ 1,774 $ 4,074 $ 5,848

Note: FY 2020 decrease was due to the curtailment of advertising as a cost saving initiative during the Covid-19 pandemic.

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

Labor $1,370 $1,356 $1,480 $1,481 $1,414 $1,774

Headcount 20 20 21 21 21 21

0

5

10

15

20

25

$0

$500

$1,000

$1,500

$2,000


Labor Expense and Headcount Trend

$ In Thousands

FY 16 FY 17 FY 18 FY 19 FY 20FY 21

Budget

M&S $3,244 $3,460 $4,612 $5,252 $3,145 $4,074

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000


Material and Services Trend

$ In Thousands





ADMINISTRATION Coordinates, manages, and directs the financial and administrative activities for the Public and Government Affairs Division.

GOVERNMENT and COMMUNITY RELATIONS

State Advocates on behalf of SEPTA’s funding and legislative priorities with the Pennsylvania General Assembly, the Governor’s office, and relevant state departments. Builds and maintains effective relationships with elected officials from the five county region, Senate and House leadership, and committees of jurisdiction. Staff serves as the Authority’s point of contact for legislative and constituent inquiries and develops strategies for engaging local and statewide stakeholders in support of transportation policies that further SEPTA’s operating and capital initiatives.

Federal Works with the region’s Congressional delegation, committees of jurisdiction, and various federal agencies to advance SEPTA’s interests both legislatively and administratively. Reviews and analyzes legislative and regulatory provisions related to transportation authorization and annual appropriations, safety, energy and environmental policy, and accessibility to ensure federal transportation policies further SEPTA’s operating and capital priorities.

Local / Community Works with Philadelphia City Council, Bucks, Chester and Montgomery County Commissioners, Delaware County Council, and local officials to advance operating and capital initiatives to meet the region’s transportation needs. Staff provides proactive outreach before and during SEPTA projects, and responds to issues impacting Council Districts and communities throughout the service area. Staff also attends city, county, and municipal meetings to update the public on SEPTA projects and works with a variety of community groups to address various transit-related issues.

MARKETING and PROMOTIONS Uses innovative and attention-grabbing promotional campaigns to build awareness about SEPTA service. Interacts with current and potential customers to build and maintain ridership across all modes and in all counties. Effectively markets SEPTA by utilizing offline and online media, event marketing, loyalty programs, industry-leading social media engagement, and strategic partnerships with area sports teams, businesses, and cultural institutions. Executes contracts and coordinates activities with third-party agencies to maximize the effectiveness of the Authority’s promotional and marketing portfolio.

MEDIA RELATIONS Responsible for informing customers and the general public about SEPTA service and developing a communications strategy that promotes the Authority locally, regionally and nationally. Staff works in coordination with key internal departments to tell SEPTA’s story. Builds and strengthens relationships with the media through news conferences and events, creating press releases and other content, and distributing information on SEPTA’s website and various social media platforms. The department prioritizes transparency and accessibility, responding to media inquiries 24 hours a day, seven days a week.






I. Build an advocacy programthat highlights SEPTA’scommitment to providingaccessible mobility that drivesthe economy, supports equityand opportunity, promotessafety and advancessustainability

a) Develop strategies to communicate SEPTA’score mission to diverse constituencies.

II. Advocate for SEPTA’s fundingand policy priorities at alllevels of government

a) Work with advocates and stakeholders,including the Southeast Partnership for Mobility,to preserve state and federal funding andidentify innovative multi-modal transportationfunding solutions.

b) Continue strong partnerships with the City ofPhiladelphia and Bucks, Chester, Delaware andMontgomery Counties, including engaging newMembers of Council and Commissioners.

c) Respond to legislative constituent inquiries andprovide timely information to elected officialsand stakeholders.

d) Continue successful partnership with legislativeoffices to enroll senior citizens on the SEPTAKey Senior ID program and develop a cardrenewal program that maintains thatpartnership.

III. Continue to demonstrate theimpact and importance ofpublic infrastructureinvestment by highlighting thesuccess of SEPTA’s CapitalProgram

a) Work with regional elected officials to highlightthe economic impact generated by SEPTAinfrastructure investment in communitiesthroughout southeastern Pennsylvania and theCommonwealth.

b) Continue to promote the economic impact oftransit in large metro regions and highlight theneed to bring systems to a state of good repairand enhanced capacity.






IV. Continue proactive approachto community and mediarelations

a) Continue to develop new and uniqueopportunities to engage media, across allplatforms, to inform the public about SEPTAinitiatives.

b) Utilize SEPTA’s new bilingual public informationmanager to develop new outreach opportunitiesand outlets to reach new and diversecommunities of customers.

c) Establish methods to highlight the Authority’sdiversity and positive contributions to the region.

V. Promote regional awareness ofSEPTA’s service andsuccessful initiatives throughcustomer, public andcorporate engagement

a) Communicate and promote the rider benefits ofusing the SEPTA Key Card.

b) Facilitate meaningful partnerships that supportthe Authority’s mission and overall brand.

c) Identify and highlight the advantages of ridingSEPTA.






I. Advocate for SEPTA’sfunding and policypriorities in Congress andthe Pennsylvania GeneralAssembly

• Worked with local, state and national partners andcoalitions to build upon successful messaging on theimportance of multi-modal infrastructure investment.

Worked with the Southeast Partnership for Mobility – aregional workgroup comprised of business and civicleaders – on developing findings andrecommendations for state and local solutions tocreate a sustainable transportation investmentstrategy.

II. Demonstrate the impactand importance of publicinfrastructure investment –Act 89 and the FAST Act –by highlighting the successof SEPTA’s “Rebuilding theSystem” capital program

• SEPTA’s successful use of Act 89 funds to invest insystem-wide state of good repair projects washighlighted via public events, such as ribbon cuttingsand ground breakings, and through outreach toelected officials and stakeholders.

III. Continue proactivecommunity outreach relatedto capital construction andservice initiatives

• Met with community groups, elected officials andstakeholders prior to and throughout SEPTAconstruction projects and major service initiatives.

• Attended various events organized by communitygroups and elected officials promoting use of publictransit, SEPTA Key and how to pursue employment atSEPTA.

IV. Expand outreach totraditional, new andcommunity-based media

• Brought on full-time bilingual Public InformationManager and expanded outreach to traditional andnew media.

• Conducted a series of media tours specific to SEPTAKey implementation to inform customers about usageand advantages.

V. Promote regionalawareness of SEPTA'sprogress

• Developed new initiatives and partnerships – includingthe “Visit the Vines” promotion – to support SEPTA’smission of ridership growth and highlight advantagesof riding SEPTA. Successful launch campaign forSEPTA Bus Route 49 and continued promotion ofSEPTA Key, the SEPTA App, and the Frequent BusNetwork.

• Utilized ISEPTAPHILLY platform to reach thousandsof social media followers and promote SEPTA’simportant role in major events throughout the region.



13. Summary of InterdepartmentalExpenses


13. Fringe Benefits


Fringe Benefits are a major expense for SEPTA representing 25.3% of the Fiscal Year 2021 Operating Budget of $1.53 billion. Responsibility for management of fringe benefit costs rests with all Authority departments, however, Finance and Human Resources take the lead in cost control. Expenditures for Fringe Benefits are largely controlled by statutory and contractual obligations and have been significantly influenced by national trends.

Listed below are the various Fringe Benefit categories:

Medical and Life Insurance SEPTA provides medical, prescription drug, dental, vision, and life insurance benefits for union employees, management employees, and retirees in accordance with SEPTA policy and labor agreements negotiated with each respective bargaining unit.

Payroll Taxes This represents the required employer contribution for Social Security (FICA) and Railroad Retirement Taxes (RRT).

Unemployment SEPTA is required to pay into the State and Railroad unemployment compensation funds and is self-insured for non-railroad employees.

Pension This includes pension obligations, excluding Railroad employees who are covered by the Railroad Retirement System.

Workers’ Compensation and FELA Obligations to transit and Railroad employees injured on duty for their medical bills and lost wages.

Medical, Prescription, Dental, Vision & Life Insurance 204,894$

Payroll and Unemployment Taxes 78,824

Pension 117,920

Workers' Compensation and FELA 27,679

Subtotal 429,317$

Capital Support and Projects (42,320)

Fringe Benefit Expense 386,997$

Fiscal Year 2021 Operating Budget

Fringe Benefit Expense

(Amounts in Thousands)


13. Fringe Benefits


Net Fringe

Department Net Labor Benefits Total

Audit and Investigative Services 1,999$ 1,102$ 3,101$


Corporate Staff 2,931 1,616 4,547

Customer Experience and Advocacy 5,756 3,174 8,930


DGM Operations, EM&C, and Vehicles 5,916 3,262 9,178

Employee Development/Relations 12,012 6,624 18,636

Engineering, Maintenance & Construction 82,932 45,733 128,665

Finance 9,068 5,001 14,069

Human Resources 4,596 2,534 7,130


New Payment Technologies 126 69 195


Operations 512,653 282,704 795,357

Planning and Strategic Initiatives 4,102 2,262 6,364

Procurement, Supply Chain & DBE 10,864 5,991 16,855

Public and Government Affairs 1,774 978 2,752


System Safety 2,035 1,122 3,157

Transit Police 21,760 12,000 33,760

Capital Allocation (9,787) (5,394) (15,181)

Total 701,776$ 386,997$ 1,088,773$

Fiscal Year 2021 Operating Budget

Labor and Fringe Benefits

Amounts in Thousands (000's)


13. Non-Departmental Expenses


Amtrak The expense is for the maintenance and use of Amtrak-owned track and facilities on the Northeast Corridor (between Trenton, NJ and Newark, DE) and the Harrisburg Line (Paoli/Thorndale Line). The Passenger Rail Investment & Improvement Act of 2008 (PRIIA) was implemented October 1, 2015. The budget reflects PRIIA mandates and cost assumptions developed by the Northeast Corridor Commission with input from SEPTA and other commuter agencies on the corridor.

ADA The budgeted contract cost to SEPTA is shown here. The Staff cost for the administration of ADA complementary service and other accessibility programs for the disabled is included in the Operations Division under Customized Community Transportation.

Shared Ride Program The budgeted cost for contractor door-to-door service for senior citizens. The cost of administrative staff in the Shared Ride Program is included in the Customized Community Transportation budget.

Debt Service Interest and Fees Interest expenses and amortization of insurance premiums associated with the Authority’s outstanding debt.

Property Insurance/Other Claims Payouts, Net

Reflects the projected premiums for insurance on various Authority assets, as well as other claims payouts net of recoveries.

Services for Headquarters’ Building

Maintenance and administrative service expense for the operation of the corporate offices at the 1234 Market Street headquarters by a professional real estate management firm. These expenses cover both SEPTA and tenant-occupied space.

Snow Removal/ Severe Weather Contingencies

Includes snow removal and deicing at Regional Rail parking lots and station platforms only. Snow removal for all other facilities is accomplished in-house with existing forces and the related labor expense is included in the departmental budgets.

Utilities Expense reflects the cost of non-propulsion electricity, heating oil, water and sewer, natural gas, and steam heat. All are based on projected rates of consumption and contractual or tariff based rates. Also included are expenses for telephone, cellular service and trash removal, which are based on our current contractual agreements.


13. Non-Departmental Expenses


CCT Connect - ADA Program

In compliance with the Americans with Disabilities Act, CCT Connect provides ADA complementary Paratransit transportation for persons who cannot use or access regular SEPTA fixed route service. Throughout the five-county service area, private carriers are under contract with SEPTA to provide door-to-door transportation to disabled riders by advanced reservation. Pre-Covid, projected Fiscal Year 2021 ridership was 639,000 trips for ADA City Division and 303,000 trips for the Suburban Division.

One of the main focuses of CCT Connect’s efforts for Fiscal Year 2021 will be the continuation of providing 100% next day rides to ADA program patrons. SEPTA is committed to maintaining a “zero trip denial” policy.

The next-day trip initiative will build upon proactive steps taken during recent years. The entire SEPTA-owned fleet of 459 vehicles is maintained to SEPTA’s standards by the contract carriers. In addition, the Philadelphia trip reservation scheduling and dispatch was centralized under SEPTA supervision along with driver training and testing. Other programs were instituted to enhance contractor accountability and customer satisfaction, including patron service monitoring and mobile data terminal (MDT) swipe card readers on all CCT Connect vehicles.

ADA Program initiatives continuing during Fiscal Year 2021 include the fleet replacement program for optimizing fleet reliability and an enhanced patron eligibility certification. This process will enable those CCT riders who are able, to use fixed route service for some or all of their travel. The training was developed in cooperation with the SEPTA Advisory Committee (SAC) and the disabled community.

Shared Ride Program

The Shared Ride Program (SRP) provides shared, advance-reservation, door-to-door transportation for Pennsylvanians age 65 and older. SEPTA’s CCT Connect Department is the SRP county coordinator for Philadelphia County. The Pennsylvania Lottery Fund reimburses SEPTA for 85% of the cost of each eligible CCT Connect Shared Ride Program trip according to pre-established rates, with the balance coming from patron fares and/or third party agency sponsors. The Shared Ride Program’s pre-Covid goal for Fiscal Year 2021 was to provide a total of 599,000 Shared Ride trips.

The Philadelphia Shared Ride Program Advisory Council (SRPAC), an independent advisory group, provides advice and information to SEPTA on Shared Ride Program service.

Injury and Damage Claims

Fiscal Year 2021 claims expense is budgeted at $24.7 million. Staff from the Authority’s Office of General Counsel, in cooperation with various outside agencies, including the City of Philadelphia and Suburban Counties District Attorney’s offices, aggressively defend against fraudulent claims.

Other Expenses

The Other Expenses category includes propulsion power, fuel, vehicle and facility rentals, and depreciation. A further description of these items can be found in the Operating Expense Section.



SEPTA

14. Summary ofCapital Improvement

Program


14. Capital Improvement Program


SEPTA’s approved FY 2021 Capital Budget totals $640.22 million and the 12-year Capital Program totals

$7.4 billion. The FY 2021 Capital Budget and 12-year capital program take into account Federal funding

assumptions based on amounts authorized under the Fixing America’s Surface Transportation (FAST)

Act; funding from the Commonwealth of Pennsylvania generated by Act 89 legislation; required local

match on state and federal funding levels; and anticipated capital financing.

The passage of Act 89 in 2013 provided a long-term transportation funding solution for the

Commonwealth of Pennsylvania. This allowed SEPTA to initiate the “Rebuilding the System” capital

program, and advance improvements throughout the transit network to bring transit assets into a state

of good repair, modernize critical systems and accommodate current and future ridership growth. For

the FY 2021 Capital Budget, SEPTA’s capital program continues to make vital investments in the region’s

transportation infrastructure necessary to maintain transit assets in a state of good repair. SEPTA will

continue to advance its capital program that improve critical infrastructure such as substations, bridges,

track and stations. SEPTA capital funding will support early actions to advance two Projects of

Significance: King of Prussia Rail and Trolley Modernization. The capital program provides for safety and

security enhancements, along with modernization of communications and signal equipment. The SEPTA

Key project continues to replace antiquated fare technology with modern payment technology. The

Authority is replacing rail vehicles that have far exceeded their useful life. The fleet of hybrid diesel-

electric buses is being expanded and pilot electric bus projects are being evaluated. Vehicle overhauls

are being performed to optimize vehicle performance. SEPTA is also in the process of restoring rail

service between Elwyn and a new station at US Route 1 in Middletown Township, Delaware County. The

capital program includes annual financial obligations such as debt service and capital lease payments.

Fiscal Year 2021 Capital Budget

(In Millions)




Capital Sources of Funds Sources of capital funds included in the FY 2021 Capital Budget are projected as follows:

Source Amount

In Millions Description

State Capital Funds Section 1514 $349.28 Asset Improvement Program

Federal Transit Administration $198.74 Section 5307, 5340, 5337 and 5339 Formula Programs (Based on SEPTA’s actual FY 2020 Allocation)

2020 Series Bond $60.00 SEPTA anticipates utilizing short-term borrowing to advance vehicle purchases during Fiscal Year 2021.

Federal Highway Flexible Funds $19.08 Anticipated share of the regional flexible funds that are flexed to transit operators

U.S. Department of Homeland Security

$1.47 Based on SEPTA’s anticipated share of Fiscal Year 2021 Transit Security Grant Program funds

City of Philadelphia, Bucks, Chester, Delaware and Montgomery Counties

$11.65 Local Matching Funds required for Federal and State Capital Grants.

Total $640.22

Fiscal Year 2021 Capital Budget (In Millions)

Capital Programs FY 2021

Bridge Improvements $ 12.89

Communications, Signal Systems and Technology Improvements 47.65

Infrastructure Safety Renewal Program 48.58

Maintenance/Transportation Shops and Offices 49.38

Projects of Significance: Early Actions 9.37

Safety & Security Improvements 11.44

SEPTA Key 25.71

Service Restoration and Improvements 52.43

Stations, Loops and Parking Improvements 46.17

Substations and Power Improvements 31.62

Track and Right-of-Way Improvements 3.40

Vehicle Acquisitions and Overhauls 184.90

Financial Obligations

Capital Asset Leases $ 60.10

Debt Service 56.59

Total Capital Budget (incl. rounding) $ 640.22




Fiscal Year 2021-2024 Capital Program

(In Millions)

Capital Programs FY 2021 FY 2022 FY 2023 FY 2024

Bridge Improvements $ 12.89 $ 13.97 $ 25.34 $ 25.45

Communications, Signal Systems and

Technology Improvements47.65 46.92 38.59 38.00

Infrastructure Safety Renewal Program 48.58 49.58 50.58 51.58

Maintenance/Transportation Shops and Offices 49.38 26.51 23.00 20.02

Projects of Significance: Early Actions 9.37 5.55 6.00 10.00

Safety & Security Improvements 11.44 21.49 20.98 18.69

SEPTA Key 25.71 14.03 9.55 0.00

Service Restoration and Improvements 52.43 21.91 7.76 0.00

Stations, Loops and Parking Improvements 46.17 42.31 44.17 60.99

Substations and Power Improvements 31.62 31.05 44.77 46.81

Track and Right-of-Way Improvements 3.40 3.65 4.69 4.79

Vehicle Acquisitions and Overhauls 184.90 202.60 219.45 208.15

Financial Obligations

Capital Asset Leases 60.10 61.92 63.78 65.70

Debt Service 56.59 40.95 62.52 62.10

Total Capital Budget (incl. rounding) $ 640.22 $ 582.44 $ 621.19 $ 612.27




FY 2021 Capital Budget and FY 2021 - 2032 Capital Program

(In Millions)




Capital Projects Impact Analysis on

Operating Budget FY 2021 – FY 2026 SEPTA CAPITAL PROGRAM

Estimated Operating Impact per Year Cost Savings / (Cost Increase)

In Thousands

Capital Projects and

Description of Impacts

FY

2021

FY

2022

FY

2023

FY

2024

FY

2025

FY

2026

Hybrid Bus Purchase Program $1,656 $1,734 $1,734 $1,734 $1,734 $1,734

In 2002, SEPTA began purchasing hybrid diesel-electric buses designed to reduce fuel

consumption and SEPTA’s carbon footprint through lower emissions. In 2016, SEPTA

completed the acquisition and delivery of 275 new 40-foot and 60-foot hybrid buses. In 2017,

SEPTA started to take delivery of another 525 40-foot hybrid buses. By FY 2022, more than 90

percent of SEPTA’s bus fleet will be hybrid or battery electric.

Battery-Electric Bus Program $224 $293 $293 $293 $293 $293

In 2016, SEPTA received a $2.6 million grant from the Federal Transit Administration (FTA) to

aid in the purchase of 25 Proterra Catalyst Zero Emission buses. These all-electric buses

began operating in 2019 and are used to service South Philadelphia Bus Routes 29 and 79.

The Proterra buses feature regenerative braking systems, which save both energy and brake

linings by capturing energy that would otherwise be lost and storing it as electricity in the

onboard battery.

In 2018, SEPTA received an additional $1.5 million grant from the FTA to aid in the purchase of

10 additional battery electric buses. The electric buses will operate on routes originating from

Midvale Bus Garage.

As a result of utilizing electricity to power the buses rather than diesel fuel, the cost per mile

decreases significantly, which may generate savings exceeding $293,000 annually. Additional

savings are expected from reduced maintenance costs over the life of the fleet.

LED Conversion Projects $113 $113 $113 $113 $113 $113

In FY 2017 & FY 2018, SEPTA retrofitted a large portion of its rail cars with Light Emitting Diode

(LED) lighting, reducing ongoing labor and material expenses while improving energy

efficiency and the customer experience. Conversion of the Market-Frankford Line cars with

the new fixtures is currently underway. SEPTA is also retrofitting maintenance facilities and

rail stations with LED lighting. In addition to benefiting from lower energy expenses, SEPTA

has also received rebates from PECO via the Smart Ideas energy efficiency programs

associated with Pennsylvania Act 129.







In Thousands



FY

2021

FY

2022

FY

2023

FY

2024

FY

2025

FY

2026

Southern District Stormwater

Project $51 $51 $51 $51 $51 $51

In FY 2019 SEPTA completed construction on the largest green stormwater infrastructure project to-

date. More than 7.8 acres of stormwater is managed at Southern District in South Philadelphia.

This project not only has environmental benefits – capturing stormwater and slowly releasing it into

the City of Philadelphia’s combined sewer system – but it has financial benefits as well. In addition

to eliminating all future stormwater fees from the Philadelphia Water Department, SEPTA received a

grant of $842,500 from the Philadelphia Water Department to manage stormwater.

Wyoming Complex Stormwater

Project $0 $0 $0 $94 $94 $94

This project, which is currently in design, will reconfigure stormwater management and improve

pavement conditions at SEPTA’s Wyoming Complex. When completed, it will manage more than 20

acres of stormwater at SEPTA’s Wyoming, Berridge and Courtland shops. Anticipated savings due

to the elimination of stormwater fees is $94,000 annually. Additionally, like the stormwater project

at Southern, SEPTA anticipates receiving a grant from the Philadelphia Water Department to assist

in the construction of the infrastructure.

Video Surveillance $21,489 $21,489 $21,489 $21,489 $21,489 $21,489

SEPTA has purchased and installed more than 28,500 cameras on vehicles and at stations. These

cameras have been used in conjunction with a partnership between SEPTA and the City of

Philadelphia District Attorney’s Office to reduce fraudulent claims on the system. The cameras

have also been instrumental in defending claims and lawsuits brought against SEPTA. The camera

systems have had a substantial effect on Claims and Legal practices and savings are expected to

continue in future years.

Revenue Locomotive Replacement

Program $412 $412 $412 $412 $412 $412

In July 2015, a contract was awarded to Siemens Industry Inc., for thirteen ACS-64 locomotives with

an option for up to an additional five. Fifteen of these vehicles have been delivered and placed in

revenue service. These locomotives feature regenerative braking, which enables energy from the

train’s slowing down to be fed back to the power system for use by other trains. The new

locomotives’ regenerative braking capability is expected to reduce electric power use by

approximately 3% (as compared to a comparable fleet without regenerative braking).







In Thousands



FY

2021

FY

2022

FY

2023

FY

2024

FY

2025

FY

2026

Driving PA Forward – Class 8 Truck

and Transit Bus Grant Program $7 $9 $9 $9 $9 $9

This project will replace five (5) utility fleet vehicles, funded via Pennsylvania’s share of the

Volkswagen Environmental Mitigation Trust. These replacements will help improve air quality and

reduce diesel emissions for the drivers and residents along the service routes.

Replacement Work Train

Locomotives $0 $10 $20 $32 $32 $32

This project will replace three (3) diesel-electric locomotives manufactured in 1954 and 1992. The

project will preserve SEPTA’s work train locomotive fleet, which is critical to maintaining SEPTA’s

Regional Rail network, while also providing local and regional air quality benefits. The new vehicles

will provide a 90 percent reduction in harmful emissions as compared to the existing vehicles.





Operating Budget FY 2021 – FY 2026 OUTSIDE FUNDING


In Thousands



FY

2021

FY

2022

FY

2023

FY

2024

FY

2025

FY

2026

Energy Retrofits Master Plan –

Facilities & Railcars $3,170 $1,162 $1,143 $1,115 $1,138 $1,116

In FY 2016, SEPTA began to implement a comprehensive energy retrofit master plan, including:

$18.2 million energy efficiency retrofit in partnership with Constellation NewEnergy, Inc. at five

major vehicle maintenance facilities (Berridge, Courtland, Fern Rock, Germantown, Southern)

and on five railcar fleets (B-IV on Broad Street Line, N-5 on Norristown High Speed Line,

Silverliner IV, V and Push-Pull on Regional Rail Lines). Energy savings will more than pay for

the project over a period of 17 years. This phase of the installation was completed in August

2017.

Additionally, SEPTA is implementing an energy efficiency retrofit at SEPTA Headquarters, 1234

Market Street. The energy retrofit project, which is scheduled to be completed in Q1 of 2021, is

budget neutral/cash flow positive pursuant to the PA Guaranteed Energy Savings Act (GESA).

SEPTA has commissioned an 8.8 MW combined heat and power (CHP) plant at the Midvale

Complex in North Philadelphia. The CHP plant will provide base load propulsion power to

Regional Rail at the Wayne Junction Substation, base load electrical power for the Midvale Bus

Maintenance Facility, and heating load for the surrounding facilities. Energy conservation

measures were included at surrounding facilities to extend the positive impact of the project.

Wayside Energy Storage

Program Buildout $92 $92 $92 $92 $92 $92

In FY 2016, SEPTA, Viridity Energy, and Constellation executed a partnership to install 8.75 MW

of battery capacity to capture, store, and reuse energy created by the regenerative braking

systems on the Market-Frankford Line and Broad Street Line cars. The batteries will also be

used to participate in the PJM Interconnection’s Frequency Regulation revenue market. The

partnership will be budget neutral/cash flow positive and build upon the existing 1.8 MW of

battery capacity SEPTA has already installed on the Market-Frankford Line. Combined, the

10.55 MW of battery capacity will generate $92,000 per year in energy savings and new revenue

for SEPTA.





Operating Budget FY 2021 – FY 2026 OUTSIDE FUNDING


In Thousands



FY

2021

FY

2022

FY

2023

FY

2024

FY

2025

FY

2026

Investments in Renewable Energy $3 $194 $194 $194 $195 $195

In May 2017, SEPTA entered into a 20-year Power Purchasing Agreement with Sunvest Solar, Inc.

Under the Power Purchasing Agreement, SEPTA commits to purchase the power generated from

Solar Photovoltaic Systems installed at four SEPTA facilities (2nd & Wyoming, Callowhill, Fern

Rock, and Roberts). SEPTA estimates a savings of $13,000 in utility costs over the life of the project

while increasing the use of renewable energy.

In July 2019, SEPTA’s Board approved a 20-year Power Purchase Agreement with Lightsource BP.

Under the Power Purchase agreement, SEPTA will purchase more than 67 MWh of renewable energy

generated from a solar farm in Franklin County Pennsylvania. SEPTA estimates a savings of

$195,000 in utility costs per year over the life of the project while increasing our use of renewable

energy to 20% of the total electricity procurement.


Glossary of Acronyms


A

ACS-64 Electric locomotives used on Regional Rail lines

ACSES II Advanced Civil Speed Enforcement System

ADA The Americans with Disabilities Act of 1990

ADAAA ADA Amendments Act of 2008

ADEA Age Discrimination in Employment Act of 1967

AGM Assistant General Manager

AIM Advancing Internal Management

APC Automatic Passenger Count

APTA American Public Transportation Association

ATC Automatic Train Control

AVL Automatic Vehicle Locator

B

BASCSC Building a SEPTA Culture of Service and Creativity

B-IV Heavy Rail Vehicle used on the Broad Street Subway

BSL Broad Street Line

BSS Broad Street Subway (also referred to as the Broad Street Line)

C

CAC Citizen Advisory Committee

CARD Computer Aided Radio Dispatch

CBNR Comprehensive Bus Network Redesign

CBTC Communications-Based Train Control

CCT Connect Customized Community Transportation Services

CHP Combined Heat and Power

COBRA Consolidated Omnibus Budget Reconciliation Act

CRC Career Resource Connection

CRM Customer Relations Management

CY Calendar Year

D

DEIS Draft Environmental Impact Statement

DGM Deputy General Manager

DBE Disadvantaged Business Enterprise

DSM Disposable Smart Media

DVRPC Delaware Valley Regional Planning Commission

E

EAP Employee Assistance Program




EMU Electric Multiple Unit

EMV Europay/MasterCard/Visa

EEO/AA Equal Employment Opportunity / Affirmative Action

EPA Environmental Protection Agency

ESCO Energy Service Company

ESL English as a Second Language

ESMS Environmental and Sustainability Management System

F

FELA Federal Employers Liability Act

FHWA Federal Highway Administration

FICA Federal Insurance Contributions Act

FIT Facilities Improvement Team

FLSA Fair Labor Standards Act

FMLA Family and Medical Leave Act

FRA Federal Railroad Administration

FTA Federal Transit Administration

FTC Frankford Transportation Center

FTE Full-Time Equivalent Position

FY Fiscal Year

G

GASB Governmental Accounting Standards Board

GEC General Engineering Consultant

GESA Guaranteed Energy Savings Agreement

GFOA Government Finance Officers Association

GIS Geographic Information System

GM General Manager

H

HIPAA Health Insurance Portability and Accountability Act of 1996

HRIS Human Resources Information System

I

IOD Injuries on Duty

ISRP Infrastructure Safety Renewal Program

IVR Interactive Voice Response System

J

JHSC Joint Health and Safety Committee

K

KTFC Keystone Transportation Funding Coalition




L

LEAD Leadership Exchange Development Program

LEED Leadership in Energy and Environmental Design

LIBOR London Interbank Offered Rate

LRV Light Rail Vehicle

LSC Location Safety Committee

LUCY Loop Through University City

M

MDBF Mean Distance Between Failures

MDT Mobile Data Terminal

M-IV Heavy Rail Vehicle used on the Market-Frankford Subway-Elevated Line

MPC Management Planning and Control Operating Budget Software

MPO Metropolitan Planning Organization

MFSE Market-Frankford Subway-Elevated

MRDG Metropolitan Rail Discussion Group

MSHL Media-Sharon Hill Line

MW Megawatt

MWh Megawatt-Hour

N

N5 Heavy Rail Vehicle used on the Norristown High Speed Line

NEC Northeast Corridor

NHSL Norristown High Speed Line

NJT New Jersey Transit

NPT New Payment Technology

NTSB National Transportation Safety Board

O

OCIP Owner Controlled Insurance Program

OEM Original Equipment Manufacturer

OGC Office of General Counsel

OSIP Operational Safety Improvement Program

P

PA UCP Commonwealth of Pennsylvania’s Unified Certification Program

PADEP Pennsylvania Department of Environmental Protection

PCC President’s Conference Committee streetcar or trolley

PECO Philadelphia Electric Company

PennDOT Pennsylvania Department of Transportation

PLRB Pennsylvania Labor Relations Board

PPE Personal Protective Equipment

PPTA Pennsylvania Public Transportation Association

PRIIA Passenger Rail Investment and Improvement Act of 2008

PTAF Public Transportation Assistance Fund

PTC Positive Train Control

PWD Philadelphia Water Department




R

RAP Rapid Assimilation Program

RFP Request for Proposal

ROI Return on Investment

RRD Regional Rail Division

RRT Railroad Retirement Taxes

RTKL Right-To-Know Law

S

SAC SEPTA Advisory Committee For Accessible Transportation

SAM Supervisory, Administrative and Management Employees

SBA Special Board of Adjustment

SBE Small Business Enterprise

SEPTA Southeastern Pennsylvania Transportation Authority

SL4 Silverliner 4 EMU Railcar used on Regional Rail Lines

SL5 Silverliner 5 EMU Railcar used on Regional Rail Lines

SOG State of Good Repair

SORT Special Operations Response Team

SRP Shared Ride Program

SRPAC Shared Ride Program Advisory Council

SSPP System Safety Program Plan

T

TIP Transit Improvement Program

TMA Transportation Management Associations

TOD Transit Oriented Development

TWU Transport Workers Union

U

USERRA Uniformed Services Employment and Reemployment Rights Act of 1994

V

VEM Vehicle Engineering and Maintenance

VIPR Visible Intermodal Prevention Response Team

VOH Vehicle Overhaul Program

W

WIT Women in Transit

Y

YAC Youth Advisory Committee


Glossary of Terms


A

Accessible - As defined by FTA, a site, building, facility, or portion thereof that complies with defined standards and that can be approached, entered, and used by persons with disabilities.

Accessible Service - A term used to describe service that is accessible to non-ambulatory riders with disabilities. This includes fixed-route bus service with wheelchair lifts or ADA Paratransit service with wheelchair lift equipped vehicles.

Accrual Basis - A basis of accounting in which expenses are recognized at the time they are incurred and revenue is recognized when earned, as opposed to disbursed or received.

ADA Paratransit Service - In accordance with the Americans with Disabilities Act (ADA), SEPTA provides comparable service for people with disabilities who are functionally unable to use regular accessible fixed-route bus service for some or all of their transportation needs. Eligible individuals can travel whenever and wherever buses operate in SEPTA’s five-county service region. See also “CCT Connect”.

Ambassador - SEPTA management or third party contract employees temporarily enlisted during special events or emergencies to serve as customer service representatives to aid in crowd control and passenger way findings.

Americans with Disabilities Act of 1990 - This federal act requires many changes to transit vehicles, operations and facilities to ensure that people with disabilities have access to jobs, public accommodations, telecommunications, and public services, including public transit.

Amtrak - Service Mark of the National Railroad Passenger Corporation and subsidiaries. Primarily provides nationwide intercity passenger railroad service.

B

Balanced Budget - A budget in which expected revenues equal expected expenses during a fiscal period. SEPTA’s enabling legislation requires the Board of Directors to adopt a balanced budget before the beginning of each fiscal year.

Blue Line - See “Market-Frankford Subway-Elevated”

Bombardier – Manufacturer of Aerospace and Rail equipment

Broad Street Line - A rapid transit subway running under Philadelphia’s main north-south street. The Broad Street Subway opened in 1928 with several extensions over the years. A spur under Ridge Avenue to 8th and Market Streets opened in 1932. Also referred to as the BSL, BSS and “Orange Line”.

Budget - A plan of financial activity for a specified period of time indicating all planned revenues and expenses for the budget period.

Bus - A transit mode comprised of rubber tired passenger vehicles operating on fixed routes and schedules over roadways. Vehicles are powered by diesel, gasoline, battery or alternative fuel engines contained within the vehicle.


Glossary of Terms


C

Capital Expenditure - Expenses that acquire, improve, or extend the useful life of any fixed asset item with an expected life of three or more years, e.g., rolling stock, track and structure, support facilities and equipment, and stations and passenger facilities. SEPTA includes capital expenditures in the Capital Budget, which is published separately from this document.

Car-Mile - A single mile traveled by either a single vehicle or a single rail car in a multiple car consist.

CCT Connect - SEPTA Customized Community Transportation (CCT) provides paratransit service — CCT Connect — to individuals with disabilities and senior citizens. In addition, SEPTA's bus fleet is 100% accessible.

CMAQ (Congestion Mitigation/Air Quality) Program - A federal grant program in which FHWA funds are transferred to FTA for transit projects designed to improve air quality and reduce traffic congestion.

Commuter Rail - Local and regional passenger train operations between a central city, its suburbs and/or another central city. It may be either locomotive-hauled or self-propelled, and is characterized by specific station-to-station fares, railroad employment practices and usually only one or two stations in the central business district. Also referred to locally as Railroad, Regional Rail and RRD.

Contributed Capital - Reflects capital grants received for the acquisition of fixed assets. Assets acquired with grants are depreciated over the estimated life of the applicable asset. Contributed Capital is also amortized over the same estimated life of the asset.

Cost Per Mile - Operating expense divided by vehicle miles for a particular program or in total.

Cost Per Passenger - Operating expense divided by ridership for a particular program or in total.

Customer Satisfaction Survey – A survey that is conducted every 2-3 years to collect rating observations about the various modes of SEPTA transit from approximately 1,950 riders and non-riders in the SEPTA region.

D

Deadhead - The miles and hours that a vehicle travels when out of revenue service. Deadhead includes leaving or returning to the garage or yard facility; or changing routes and when there is no expectation of carrying revenue passengers. However, deadhead does not include charter service, operator training or maintenance training.

Debt Service - The payment of interest on outstanding debt and the repayment of principal on long term borrowed funds according to a predetermined payment schedule.

Deficit - The amount by which revenue and subsidy falls short of expenses during a given accounting period.


Glossary of Terms


Delaware Valley Regional Planning Commission - The area-wide agency, or Metropolitan Planning Organization (MPO), charged with the conduct of the urban transportation planning process. It is also the single, region-wide recipient of Federal funds for transportation planning purposes. Together with the state, it carries out the planning and programming activities necessary for Federal capital funding assistance. The MPO is designated by agreement among the various units of local government and the governor.

Depreciation and Amortization - The charges that reflect the loss in service value of the transit agency’s assets. Depreciated items have a high initial cost and a useful life of more than one accounting period. In order to account for the reduction in value (usefulness) of this type of asset, a portion of the cost is expensed each year of the asset’s life.

F

Farebox Revenue - Revenues obtained from passengers and other fare subsidies except the state reduced fare subsidy program. Farebox revenue is also referred to as Passenger Revenue.

Fares - The amount charged to passengers for use of various services.

Fast Act – Fixing America’s Surface Transportation Act. Passed by Congress and signed into law by President Obama on December 7, 2015, providing long-term federal funding for critical transportation needs.

Federal Transit Administration - The FTA is the federal agency which provides financial assistance to cities and communities to provide mobility to their citizens.

Fiscal Year - SEPTA’s fiscal year runs from July 1 through June 30.

Fixed Guideway - A mass transportation facility using and occupying a separate right-of-way or rail for the exclusive use of mass transportation and other high occupancy vehicles; or using a fixed catenary system useable by other forms of transportation.

Fixed Route Service - Service provided on a repetitive, fixed-schedule basis along a specific route with vehicles stopping to pick up and deliver passengers to specific locations; each fixed-route trip serves the same origins and destinations, unlike demand responsive and taxicabs.

Flexible Funds - Federal funds made available by MAP-21 that can be used for various transportation projects, including both highway and mass transit projects. Allocation of these funds is at the discretion of regional Metropolitan Planning Organizations (MPOs) and state governments.

Fringe Benefits - Payments or accruals to others (insurance companies, governments, etc.) on behalf of an employee and payments or accruals direct to an employee arising from something other than the performance of a duty. These payments are costs over and above “labor” costs, but still arising from the employment relationship.


Glossary of Terms


Full-Time Equivalent Position (FTE) - A measurement equal to one staff person working a full schedule for one year.

Fully Allocated Costs - The distribution of operating expenses to each mode by type of service and function. Fully allocated costs account for all direct costs plus the assignment of any joint or shared expenses.

Funding Formula - A specific formula used to determine a subsidy level.

G

Government Finance Officers Association Mission Statement (GFOA) - The purpose of the Government Finance Officers Association is to enhance and promote the professional management of governments for the public benefit by identifying and developing financial policies and best practices and promoting their use through education, training, facilitation of member networking, and leadership.

Green Line - See “Subway-Surface Lines”

H

Hay Evaluation System – A job performance evaluation method used by SEPTA.

Headquarters Allocation - A method used to allocate the costs associated with operation and administration of SEPTA’s headquarters division to the other four operating divisions.

Headway - Time interval between vehicles moving in the same direction on a particular fixed route.

Heavy Rail - A transit mode that is an electric railway with the capacity for a heavy volume of traffic. It is characterized by high speed and rapid acceleration passenger rail cars operating individually or in multi-car trains on fixed rails; separate rights-of-way from which all other vehicular and foot traffic are excluded; sophisticated signaling, and high platform loading.

Heavy Rail Cars - Rail cars with motive capability, driven by electric power taken from overhead lines or third rails, configured for passenger traffic and usually operated on exclusive rights-of-way.

Hybrid Bus - A bus that is powered by a combination of electricity and diesel, gasoline or alternative fuel.

I

Infrastructure - The physical assets of the Authority, e.g., rail lines and yards, power distribution, signaling, switching, and communications equipment, passenger stations, information systems, and roadways, upon which the continuance and growth of transit depend.

Interest Expense - The charges for the use of borrowed capital incurred by the transit agency, including interest on long term and short term debt obligations.

Interlocking – An arrangement of signal apparatus and turnouts that prevents conflicting movements through an arrangement of tracks such as junctions or crossings.


Glossary of Terms


ISO 14001 Environmental Certification – The international standard that specifies requirements for an effective environment management system (EMS).

L

Leases and Rentals - The payments for the use of capital assets not owned by the transit agency.

Light Rail - A transit mode that typically is an electric railway with a lighter volume traffic capacity compared to heavy rail. It is characterized by passenger rail cars operating individually or in short, usually two car trains on fixed rails on shared or exclusive right-of-way; low or high platform loading; and vehicle power drawn from an overhead electric line via a trolley pole or a pantograph.

Light Rail Car - A rail car with motive capability, usually driven by electric power taken from overhead lines, configured for passenger traffic and usually operating on non-exclusive right-of-way. Also known as “streetcar,” “trolley car” and “trolley”.

Linked Trip - A single, one-way trip without regard for the number of vehicles boarded to make the trip (i.e., a home-to work trip taken by boarding a bus, to a train, to another bus represents one linked trip or three unlinked trips).

M

Market-Frankford Subway-Elevated - The Market-Frankford Line runs on an elevated guideway from the Frankford Transportation Center in Northeast Philadelphia, through Center City Philadelphia as a subway, and continuing on an elevated guideway above Market Street in West Philadelphia into 69th Street Terminal in Upper Darby, Delaware County. Also referred to as the Market Street Elevated (MSE), MFSE and “Blue Line.”

Mean Distance Between Failure – A measure of vehicle availability and reliability, equal to the average distance between failures for all vehicles within a particular mode.

N

Net Position - Total assets and deferred outflows of resources minus total liabilities and deferred inflows of resources of the Authority. This term is used in SEPTA’s annual financial statements.

Non-Revenue Vehicle - Vehicles and equipment that are used for construction, vehicle and facility maintenance, and service supervision. These vehicles are not used for passenger revenue service.

O

Operating Assistance - Financial assistance for transit operations (as opposed to capital) expenditures.

Operating Budget - The planning of revenues and expenses for a given period of time to maintain daily operations.


Glossary of Terms


Operating Ratio - Operating revenue divided by operating expense. For this purpose, the Commonwealth has defined operating revenue to include Passenger Revenue, Shared Ride program revenue, Investment Income, Other Income and Route Guarantees. Also for this purpose, the Commonwealth excludes Depreciation from operating expenses.

Orange Line – See “Broad Street Line”

P

Passenger Miles - The cumulative sum of the distance ridden by each passenger.

Public Transportation - As defined in the Federal Transit Act, transportation provided by bus or rail, or other conveyance, either publicly or privately owned, providing to the public general or special service (but not including school buses or charter or sightseeing service) on a regular continuing basis. Public transportation is also synonymous with the terms mass transportation and transit.

R

Revenue Car Mile or Revenue Vehicle Mile - A single mile traveled by one car (or vehicle) during which the vehicle is in revenue service (i.e., picking up and/or dropping off passengers).

Revenue Vehicle - A single vehicle or a single car in a multiple car consist during which the vehicle is in revenue service (i.e., picking up and/or dropping off passengers).

Reverse Commute - City to suburb commute. This phrase refers to the fact that most riders commute from the suburbs to the city.

Ridership - Each passenger counted each time that person boards a vehicle. See also unlinked passenger trips.

Rolling Stock - Public transportation vehicles including commuter rail cars, locomotives, rapid transit cars, light rail cars, trolleybuses, buses, and vans.

Route Mile - A one-mile segment of a given fixed route in a fixed route network.

S

Shared-Ride Program - The Shared-Ride program is a door-to-door, advance-reservation, ride-sharing service, offered to senior citizens 65 years of age and residents of Philadelphia. This service can be used to travel within the City of Philadelphia and to any location in the surrounding counties within three miles of the City's border. Pennsylvania’s Lottery Fund contributes to the cost of operating this program.

Silverliner - A multiple unit self-propelled railroad passenger car, powered by electricity collected from overhead catenary wires. The Silverliner fleet was acquired over time and currently consists of two vehicle types—Silverliner IV and V. These railroad cars feature stainless steel construction and represent the majority of SEPTA’s railroad fleet.

Streetcar - See “Trolley”


Glossary of Terms


Subsidy - Funds received from another source that are used to cover the cost of a service or program that is not self-supporting.

Subway-Surface Lines - A combination of five trolley lines serving various neighborhoods in West Philadelphia or nearby suburban communities above ground, reaching Center City Philadelphia through a subway tunnel partially shared with the Market-Frankford Line.

Surplus - The amount by which revenue and subsidy exceeds total expenses during a given accounting period.

T

Total Vehicle Miles - The sum of all miles operating by passenger vehicles, including mileage when no passengers are carried.

Trackless Trolley - See “Trolleybus”

Trapeze - Software utilized by SEPTA for scheduling and management of transportation operations.

Trolley - A powered rail car, usually driven by electric power drawn from overhead wires via a trolley pole or pantograph. The vehicle usually operates on shared rights-of-way. Also known as “trolley car,” “streetcar” and “light rail car”.

Trolleybus - An electric, rubber-tired transit vehicle, manually steered, propelled by a motor drawing current through overhead wires from a central power source not on board the vehicle. Also known locally as “Trackless Trolley”.

V

VERITAS - Authority’s Customer Relations Management (CRM) program


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